Question
You are offered the choice of the following two income streams; - $10,000 every 3 years in perpetuity with the first receipt immediately. $800 every
You are offered the choice of the following two income streams; -
$10,000 every 3 years in perpetuity with the first receipt immediately.
$800 every month for 15 years with the first receipt at the end of the first month.
The annual effective interest rate is 6% pa.
Which income stream do you choose?
(Answer to the nearest dollar)
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
