A deposit of X is made at the end of the year for ten years in order to accumulate a fund which will make payments of 100 at end of year forever, where the payments will start at the end of year 11. Find x if the effective interest rate is 6%. Show all work and equations.

Answer rating: 100% (QA)

To solve this problem we can use the concept of the present value of a perpetuity Given Payments of ... View the full answer