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Explain fully with equations used 2. (20 pts) Payment stream A has annual payments of 100 at the beginning of each year that start today
Explain fully with equations used
2. (20 pts) Payment stream A has annual payments of 100 at the beginning of each year that start today and continue indefinitely. Payment stream B has annual payments of 100 that start 20 years from today and continue indefinitely. The present value of payment stream B is 2/3 the present value of payment stream A. Determine the annual effective interest rateStep by Step Solution
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