- #1

yourmom98

- 42

- 0

a)Set up a line diagram showing the present value of each of the $6000 payments.

Note: You will need to find the present value of an amount when calculating the present value of each $6000 payment.

b)Explain why the amounts form a geometric series.

c)Calculate the sum of this geometric series using . Sn=( a(r^n-1)) / (r-1)

a) okay so it goes 6000,6000/(1.1)^1 ... 6000/(1.1)^4 (1+i)=1.1

b) it is geometric because the ratio btwn consecutive terms are constant

c) Okay now i dont know how to sub in and then solve it because i dont know A because i am assuming that he is giving 1 payment for the whole 5 years the kid is going to an university. and i dont know Sn because i am SOLVING for Sn so how do i sub for r and how do i solve?