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Assume the rate of interest is 8 % . How much would you need to set aside to provide each of the following? a .
Assume the rate of interest is How much would you need to set aside to provide each of the following?
a $ billion at the end of each year in perpetuity. Enter your answer in billions rounded to decimal place.
b A perpetuity that pays $ billion at the end of the first year and that grows at a year. Enter your answer in billions rounded to
decimal place.
c $ billion at the end of each year for years. Do not round intermediate calculations. Enter your answer in billions rounded to
decimal places.
d $ billion a year spread evenly over years. Do not round intermediate calculations. Enter your answer in billions rounded to
decimal places.
Answer is complete but not entirely correct.
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