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Assume the rate of interest is 5%. How much would you need to set aside to provide each of the following? $1 million at the
Assume the rate of interest is 5%. How much would you need to set aside to provide each of the following?
- $1 million at the end of each year in perpetuity.
- A perpetuity that pays $1 million at the end of the first year and that grows at 3% a year.
- $1 million at the end of each year for 10 years.
- You must pay $18,000 a year in school fees at the end of each of the next five years.
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