Question
Some parents left an estate of 450,000 for their two children, Kevin and Karen. The children received the interest only from the estate, thus the
Some parents left an estate of 450,000 for their two children, Kevin and Karen. The children received the interest only from the estate, thus the balance in the estate would remain unchanged.
Kevin received an annuity-immediate of 35,000 for N years and Karen received a perpetuity immediate starting at time N+1 with payments of the same amount.The present value of the payments Karen received is 2.9 times the present value of the payments Kevin received.
What is N?
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Financial Management Principles And Practice
Authors: Timothy Gallagher
6th Edition
1930789157, 978-1930789159
