Hi all!
Attached is a problem I couldn't solve, I hope someone could help me with it...
I solved part a correctly, however, would I substituted the values in part b to the formula I was taught (see attachment), I got a wrong answer! The answer should be [1000(1.075)([1.075^10] -1)] /[1.075-1].
Why the additional (1.075)???
I am officially confused :S
I would appreciate any help...
Thanks in advance.