Question
A local bank advertises the following deal: Pay us $100 a year for 12 years and then we will pay you (or your beneficiaries) $100
| A local bank advertises the following deal: Pay us $100 a year for 12 years and then we will pay you (or your beneficiaries) $100 a yearforever. |
| a. | Calculate the present value of your payments to the bank, if the interest rate available on other deposits is 4.75%. |
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
