Question: 3. On 12/31/11 you are considering purchasing a security that pays annual interest of $50 forever. What is the value of this investment on 12/31/11

3. On 12/31/11 you are considering purchasing a security that pays annual interest of $50 forever. What is the value of this investment

on 12/31/11 if the market rate for such investments is 5%?

on 12/31/16 if the market rate is 5%?

on 12/31/21 if the market rate is 10%?

INPUT AREA

Payment Market rates @:

12/31/2011

12/31/2016

12/31/2021

OUTPUT AREA

Value on:

12/31/2011

12/31/2016

12/31/2021

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