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    Jeffdal's Avatar
    Jeffdal Posts: 4, Reputation: 1
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    #1

    May 13, 2010, 11:33 AM
    How can I simplify: 50 = 2(1+r) + 2(1+r)^2 + 2(1+r)^3 + 2(1+r)^4 ?
    Is there any way to solve for "r" or is the best way by using trial and error?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    May 13, 2010, 01:57 PM

    I don't know how to solve this to get a closed-form solution. However, you can simplify a bit, and then use an approximation technique to get a very close answer. So if you substitute x = 1+r, and divide the equation through by 2, you get:

    25 = x + x^2 + x^3 + x^4

    Using a technique such as Newton's method (nicely explained by galactus here: https://www.askmehelpdesk.com/mathem...-a-470457.html ) you find that there are two answers: x=1.890629 and x = -2.45276. So r = 0.890629 or r = -3.45276
    Jeffdal's Avatar
    Jeffdal Posts: 4, Reputation: 1
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    #3

    May 13, 2010, 02:44 PM

    Thank you for your help!

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