Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me on these 3 questions! The present value of a perpetuity-due with annual payments of size 1000 is 39610.04. Determine that annual effective
Please help me on these 3 questions!
The present value of a perpetuity-due with annual payments of size 1000 is 39610.04. Determine that annual effective interest rate for this scenario. Give your answer as a percentage rounded to four places (i.e. X.XXXX%). Do not include the percent sign in BlackBoard. QUESTION 7 A perpetuity paying 1 at the beginning of each 4-month period has a present value of 20. A second perpetuity pays K at the end of every 3-year period. Assuming the same annual effective interest rate, the two present values are equal. Calculate K. Give your answer as a decimal rounded to two places (i.e. X.XX). QUESTION 8 For next 10 years, Joe will make annual deposits of size D at the end of each year into an account that earns an annual effective interest rate of 5%. The deposits accumulate in size to allow Joe to make withdraws of 10000 each year for a total of 15 consecutive years, with the first withdrawal coming one year after the final deposit. Calculate D. Give your answer as a decimal rounded to two places (i.e. X.XX)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started