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Question At an annual effective rate of interest i, the following 2 payment streams have equal present values. (i) $370 paid at the end of

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Question At an annual effective rate of interest i, the following 2 payment streams have equal present values. (i) $370 paid at the end of each year for 14 years. (ii) A 14-year deferred perpetuity-immediate of $185 per year (i.e. first payment at time 15). Find the value closest to the effective annual rate of interest. Possible Answers A 2 B 3 6 D 5 E 4

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