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calculate using financial calculator 77. Calculating Interest Rates (LO3) A financial planning service offers a university savings program. The plan calls for you to make
calculate using financial calculator
77. Calculating Interest Rates (LO3) A financial planning service offers a university savings program. The plan calls for you to make six annual payments of $13,000 each, with the first payment occurring today, your child's 12 th birthday. Beginning on your child's 18 th birthday, the plan will provide $30,000 per year for four years. What return is this investment offering? 78. Break-Even Investment Returns (LO3) Your financial planner offers you two different investment plans. Plan X is a $25,000 annual perpetuity. Plan Y is a 15 . year, $35,000 annual annuity. Both plans will make their first payment one year from today. At what discount rate would you be indifferent between these two plans? 79. Perpetual Cash Flows (LO1) What is the value of an investment that pays $25,000 every other year forever, if the first payment occurs one year from today and the discount rate is 9% compounded daily? What is the value today if the first payment occurs four yehrs from today Step by Step Solution
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