Question
A loan can be repaid in two ways: (i) a perpetuity-due with annual payment $1000; (ii) a 3-year deferred annuity-immediate with 10 annual payments of
A loan can be repaid in two ways: (i) a perpetuity-due with annual payment $1000; (ii) a 3-year deferred annuity-immediate with 10 annual payments of $Q. Calculate Q if the annual effective interest rate is 7%.
No excel please. Answer=2666.11232
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Handbook Of Global Financial Markets
Authors: Sabri Boubaker, Duc Khuong Nguyen
1st Edition
9813236647, 978-9813236646
