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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Plz help me to solve this mathematical equation
Hi,
Does anyone know how to find the ‘i’ in this equation? please help! Thanks
0.579 x [180 x (1+i)² + 180 x (1+i) + 180]
26.62
= 13.893
The following steps might help
0.5795 x [180 x (1+2i+i²)+180 x (1+i) + 180] = 13.893
26.62
0.579 x [180 + 360i + 180i² + 180 +180i +180] = 13.893
26.62
0.579 x [ 540 +540i +180i²] = 13.893 x 26.62
312.66 + 312.66i + 104.22i² = 369.83166
Rearranging the equation
104.22i² + 312.66i – 57.17166 = 0
Solving the simultaneous equation (I used my calculator for this but there is a formula)
i = 0.1729 or -3.1729
Hope that helps
hi there, thanks for your reply. U solved my problem. the suggested answer was between 17 and 18%, and your answer is exactly within this range. thank you so much.
