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The present values of the following three annuities are equal: (i) perpetuity-immediate paying 1 each year, calculated at an annual effective interest rate of 7.84%.
The present values of the following three annuities are equal: (i) perpetuity-immediate paying 1 each year, calculated at an annual effective interest rate of 7.84%. (ii) 26-year annuity-immediate paying 1 each year, calculated at an annual effective interest rate of j%. (iii) n-year annuity-immediate paying 1 each year, calculated at an annual effective interest rate of (j1)%. Calculate n.
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