Question
Mike joins a savings program where he deposits $1000 at the beginning of each year for 25 years. In return, he will earn a
Mike joins a savings program where he deposits $1000 at the beginning of each year for 25 years. In return, he will earn a perpetuity paying $6300 per year with the first payment at the end of the 30th year. The effective interest rate is 5% for the first 20 years and 8% afterward a) Will Mike have accumulated enough to fund the perpetuity? b) If your answer above is no, find the unique extra deposit X that Mike has to make at the end of the 28th year in order to fund the perpetuity +Drag and drop an image or PDF file or click to browse...
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