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How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments (in $ dollars)? Assume an
How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments (in $ dollars)? Assume an interest rate of 10%. $ You have just retired with savings of $2 million. If you expect to live for 53 years and to earn 6% a year on your savings, how much can you afford to spend each year (in $ dollars)? $ (Assume that you spend the money at the start of each year.) A stock is expected to pay dividends of $1.45 per share in Year 1 and $1.68 per share in Year 2. After that, the dividend is expected to increase by 3.5% annually. What is the current value of the stock at a discount rate of 15% (in $ dollars)? $_
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