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Paul deposits $ 1,000 into a fund at the beginning of each year for 20 years. The fund earns interest at an annual effective rate
Paul deposits $ 1,000 into a fund at the beginning of each year for 20 years.
The fund earns interest at an annual effective rate of 8%.
At the end of 20 years, he uses the fund to purchase a perpetuity-immediate with annual payments of X, based on an annual rate of discount of 6%.
Determine X. Possible answers are 2,589 or 2,689 or 2,603 or 2,746 or 2,921.
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