Question
Both Susan and Julie make purchases on the same day. Susan purchases a perpetuity that pays $1000 at the end of each year, using an
Both Susan and Julie make purchases on the same day. Susan purchases a perpetuity that pays $1000 at the end of each year, using an interest rate of 4%. Julie buys an annuity that pays $1000 at the end of each year for 40 years. Find the interest rate so that Julies annuity has the same present value as Susans perpetuity.
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The Routledge Handbook Of Financial Literacy
Authors: Gianni Nicolini, Brenda J. Cude
1st Edition
0367457776, 978-0367457778
