The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $500,000. If the gradient increase each year, G, is $3,000, determine the cash flow in year 1 at an interest rate of 10% per year.

Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter2: Equations, Inequalities, And Problem Solving
Section2.S: Summary
Problem 8S: What interest rate would you need to get to double an investment of 200 in eight years?
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The future worth in year 10 of an arithmetic
gradient cash flow series for years 1 through
10 is $500,000. If the gradient increase each
year, G, is $3,000, determine the cash flow in
year 1 at an interest rate of 10% per year.
Select one:
a. $1927
b. $1563
c. $124,076
d. $172,034
Transcribed Image Text:The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $500,000. If the gradient increase each year, G, is $3,000, determine the cash flow in year 1 at an interest rate of 10% per year. Select one: a. $1927 b. $1563 c. $124,076 d. $172,034
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