Question
A local bank is running the following advertisement in the newspaper: For just $2,000 we will pay you $100 forever! The fine print in the
A local bank is running the following advertisement in the newspaper: "For just $2,000 we will pay you $100
forever!" The fine print in the ad says that for a $2,000 $100 every year in perpetuity, starting one year after the deposit is made. What interest rate is the bank advertising (what is the rate of return of this investment)?
he interest rate the bank is advertising is
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Mutual Fund Industry Handbook
Authors: Gremillion
1st Edition
0471736244, 978-0471736240
