Question
You have been offered a Perpetuity of $1500 per month and a 25-year Annuity which also pays you $1500 per month. Assume a 5% interest
You have been offered a Perpetuity of $1500 per month and a 25-year Annuity which also pays you $1500 per month. Assume a 5% interest rate for both and they are both offered to you for $275,000. Which one should you purchase and why?
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Financial Management Principles And Applications
Authors: Arthur J. Keown
9th Edition
013033362X, 9780130333629
