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Renee buys a perpetuity paying $1,000 every two years, starting immediately. She deposits the payments into a savings account earning interest at an effective annual
Renee buys a perpetuity paying $1,000 every two years, starting immediately. She deposits the payments into a savings account earning interest at an effective annual interest rate of 6%. Ten years later, before receiving the sixth payment, Renee sells the perpetuity based on an effective annual interest rate of 6%. Using proceeds from the sale plus the money in the savings account, Renee purchases an annuity paying P at the end of every three years for thirty years at an annual effective interest rate of 3%. Find P .
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