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9) Brian buys a 10-year decreasing annuity-immediate with annual payments of 10,9,8,...,1. On the same date, Jenny buys a perpetuity-immediate with annual payments. For the
9) Brian buys a 10-year decreasing annuity-immediate with annual payments of 10,9,8,...,1. On the same date, Jenny buys a perpetuity-immediate with annual payments. For the first 11 years, payments are 1,2,3,..., 11. After year 11, payments remain constant at 11. At an annual effective interest rate of i, both annuities have a present value of X. Calculate X. 9) Brian buys a 10-year decreasing annuity-immediate with annual payments of 10,9,8,...,1. On the same date, Jenny buys a perpetuity-immediate with annual payments. For the first 11 years, payments are 1,2,3,...,11. After year 11, payments remain constant at 11. At an annual effective interest rate of i, both annuities have a present value of X. Calculate X
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