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Problem 19.3 I The present values of the following three annuities are equal: 1. perpetuity-immediate paying 1 each year, calculated at an annual effective interest
Problem 19.3 I The present values of the following three annuities are equal: 1. perpetuity-immediate paying 1 each year, calculated at an annual effective interest rate of 7.25%; 2. 50-year annuity-immediate paying 1 each year, calculated at an annual effective interest rate of j%; 3. n-year annuity-immediate paying 1 each year, calculated at an annual effective interest rate of (j 1)%. Calculate n. (6) 19.3 change interest rate in part 1 to 6 2/3 (that is 6.6666666... )% (a)(5 points) What is j? (b)(5 points) What is n
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