Perpetuities A local bank advertises the following deal Pay us $100 a year for 10 years and then we will pay you (or your beneficiaries) $100 a year forever Is this a good deal if the interest rate available on other deposits is 8 percent a) What is the future value in SEVEN years if you receive $3...

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Perpetuities. A local bank advertises the following deal: Pay us $100 a year for 10 years and

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Perpetuities. A local bank advertises the following deal: Pay us $100 a year for 10 years and then we will pay you (or your beneficiaries) $100 a year forever. Is this a good deal if the interest rate available on other deposits is 8 percent?

a) What is the future value in SEVEN years if you receive $300 in 3 years and $500 at the end of 6 years? Assume an annual compound rate of 8.5%.

Posted Date: Jun 01, 2024 04:12 AM

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Perpetuities. A local bank advertises the following deal: Pay us $100 a year for 10 years and

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