Question
Suppose Mike wants to make a withdrawal of $100,000 from his retirement fund to buy a perpetuity-due of X per year based on an annual
Suppose Mike wants to make a withdrawal of $100,000 from his retirement fund to buy a perpetuity-due of X per year based on an annual nominal yield of interest i = 5% compounded annually. What is the value of X?
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The Global Financial Crisis And The New Monetary Consensus
Authors: Marc Pilkington
1st Edition
0415524059, 978-0415524056
