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Aditi buys a perpetuity paying $3,000 every three years, starting immediately. She deposits the payments into a savings account earning interest at an effective interest
Aditi buys a perpetuity paying $3,000 every three years, starting immediately. She deposits the payments into a savings account earning interest at an effective interest rate of 5%. Twelve years later, before receiving the fifth payment, Aditi sells the perpetuity based on an effective annual interest rate of 5%. Using proceeds from the sale plus the money in the savings account, she purchases an annuity paying P at the end of every two years for twenty years at an annual effective interest rate of 5%. Her savings account balance immediate before the 5th payment rounded to the nearest dollar is 17,535. Find the balance to the nearest cent. Number Aditi sells the perpetuity for 22,033 rounded to the nearest dollar. Find the sale price to the nearest cent. Number Find P. Answer to the nearest cent. Number
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