A pays $1 at the beginning of each of the first three years, $2 at the beginning of each of the next three years, $3 at the beginning of each of the next three years, and so on B pays $K at the beginning of each of the first two years, $2K at the beginning of each of the next two years, $3K at the beginning of each of the next two years, and so on Given that the current annual effective interest rate of 5 , and that the present value of these two perpetuity is equal to each other Determine K A pays $1 at the beginning of each of the first three years, $2 at the beginning of each of the next three years, $3 at the beginning of each of the next three years, and so on B pays $K at the beginning of each of the first two years, $2K at the beginning of each of the next two years, $3K at the beginning of each of the next two years, and so on Given that the current annual effective interest rate of 5 , and that the present value of these two perpetuity is equal to each other Determine K

Question

A pays $1 at the beginning of each of the first three years, $2 at the beginning of each of the next three years, $3 at the beginning of each of the next three years, and so on  B pays $K at the beginning of each of the first two years, $2K at the beginning of each of the next two years, $3K at the beginning of each of the next two years, and so on  Given that the current annual effective interest rate of 5 , and that the present value of these two perpetuity is equal to each other  Determine K  A pays $1 at the beginning of each of the first three years, $2 at the beginning of each of the next three years, $3 at the beginning of each of the next three years, and so on  B pays $K at the beginning of each of the first two years, $2K at the beginning of each of the next two years, $3K at the beginning of each of the next two years, and so on  Given that the current annual effective interest rate of 5 , and that the present value of these two perpetuity is equal to each other  Determine K

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Question

A pays $1 at the beginning of each of the first three years, $2 at the beginning of each of the next three years, $3

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