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Investment A is an annuity that pays $1,230 at the end of each year for 10 years. Investment B is a perpetuity that pays $315
- Investment A is an annuity that pays $1,230 at the end of each year for 10 years.
Investment B is a perpetuity that pays $315 at the end of each year forever.
Given that the interest rate is 3% per year, which investment has the higher present value as of today?
- Investment A
- Investment B
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Fundamentals Of Investments Valuation And Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
9th Edition
1260013979, 9781260013979
