Answered step by step
Verified Expert Solution
Question
1 Approved Answer
12 Question 20 (3 points) A pension fund must pay out $3 million next year, $2 million the following year, and then $1 million
12 Question 20 (3 points) A pension fund must pay out $3 million next year, $2 million the following year, and then $1 million the year after that. If the discount rate is 6%, what is the duration of this set of payments? 2.29 years 2.94 years 1.8 years 1.63 years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Governmental and Nonprofit Accounting
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
10th edition
132751267, 978-0132751261
