There are two perpetuities. The first has level payments of/? at the end of each year. The
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There are two perpetuities. The first has level payments of/? at the end of each year. The second is increasing such that the payments are q, 2q, 3q, Find the rate of interest which will make the difference in the present values of these perpetuities
(a) zero;
(b) a maximum.
AppendixLO1
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Theory Of Interest And Life Contingencies With Pension Applications A Problem Solving Approach
ISBN: 978-1566983334
3rd Edition
Authors: Asa Michael M. Parmenter, Ph.d.
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