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Is it possible to solve this equation?

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D

Dari

Lifer
(150R^t)-10(sum(R^t,t,1,t-1))-10t=0
where R=1.1

I tried using the normal solve technique in Matlab and it produced an error.

For the curious, this is a country living off its foreign assets to pay its seconday deficit. Time t is the period before they switch to inflationary financing.
The lecture notes had a much simpler function that I believed was incorrect: 150-10t=0
 
would sum(R^t,t,1,t-1) be the same as R^t+2*t?

Around 8.5 would be the min, won't reach zero, I think.
 
Originally posted by: Dari
(150R^t)-10(sum(R^t,t,1,t-1))-10t=0
where R=1.1

I tried using the normal solve technique in Matlab and it produced an error.

For the curious, this is a country living off its foreign assets to pay its seconday deficit. Time t is the period before they switch to inflationary financing.
The lecture notes had a much simpler function that I believed was incorrect: 150-10t=0
Click to expand...

hmmm...it could be solved....and i use this term loosely...COULD...
 
Originally posted by: Dari
(150R^t)-10(sum(R^t,t,1,t-1))-10t=0
where R=1.1

I tried using the normal solve technique in Matlab and it produced an error.

For the curious, this is a country living off its foreign assets to pay its seconday deficit. Time t is the period before they switch to inflationary financing.
The lecture notes had a much simpler function that I believed was incorrect: 150-10t=0
Click to expand...

150-10t=0
t = 15

Plugging it back to your original equation:

168.8624 = 0

Looks like that was a pretty shitty simplification.

Also using the powers of excel and expanding to to 100, the answer is not converging. So your original equation is broken.
 
this should be a multiple choice question. Then at least I could guess and maybe look smart. :thumbsup:
 
Originally posted by: TuxDave
Originally posted by: Dari
(150R^t)-10(sum(R^t,t,1,t-1))-10t=0
where R=1.1

I tried using the normal solve technique in Matlab and it produced an error.

For the curious, this is a country living off its foreign assets to pay its seconday deficit. Time t is the period before they switch to inflationary financing.
The lecture notes had a much simpler function that I believed was incorrect: 150-10t=0
Click to expand...

150-10t=0
t = 15

Plugging it back to your original equation:

168.8624 = 0

Looks like that was a pretty shitty simplification.

Also using the powers of excel and expanding to to 100, the answer is not converging. So your original equation is broken.
Click to expand...

Right. I think it should be this instead:
(150R^t)-10(sum(R^t,t,1,t-1))-10=0

EDIT: I'm trying to account for the interest accrued in each period from the remaining assets. It should be close to 15, but a bit more.
 
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