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crmhaske eNotes educator| Certified Educator

`200000=55000((1-((1+g)/(1+i))^n)/(i+g))`

`200000=55000((1-((1+0.05)/(1+i))^4)/(i+0.05))`

`3.63=(1-((1+0.05)/(1+i))^4)/(i+0.05)`

`3.63i+0.182=1-((1+0.05)/(1+i))^4)`

`(3.63i-0.818)(1+i)^4+1.216=0`

`(3.63i-0.818)(i^4+4i^3+6i^2+4i+1)+1.216=0`

`3.63i^5+13.702i^4+18.508i^3+9.612i^2+0.358i+0.398=0`

In order to determine the roots of the function we can graph it:


Therefore:

`i~~-1.7`

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