Charles purchased a perpetuity 10 years ago for $63,522 that makes quarterly payments. He received his...
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Charles purchased a perpetuity 10 years ago for $63,522 that makes quarterly payments. He received his first payment of $1,911 from the perpetuity one quarter after the purchase. Find the interest rate that the perpetuity has promised to pay. Find the present value of a string of equal cash flows. The first $821 payment is made 10 years from today. Subsequent payments of $821 are made a the end of each semiannual period forever. The interest rate is currently 4.85% per year. Charles purchased a perpetuity 10 years ago for $63,522 that makes quarterly payments. He received his first payment of $1,911 from the perpetuity one quarter after the purchase. Find the interest rate that the perpetuity has promised to pay. Find the present value of a string of equal cash flows. The first $821 payment is made 10 years from today. Subsequent payments of $821 are made a the end of each semiannual period forever. The interest rate is currently 4.85% per year.
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The perpetuity has an interest rate of 533 This can be calculated by taking th... View the full answer
Related Book For
Taxation For Decision Makers 2014
ISBN: 9781118654545
6th Edition
Authors: Shirley Dennis Escoffier, Karen Fortin
Posted Date:
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