A particular financial institution offers you the following deal: "Invest $100 with us each year for the next 10 years and then we'll turn around and pay you $100 year thereafter (starting in year 11) forever!"

What is the implied interest rate on this offer?

Answer rating: 100% (QA)

This deal can be considered an annuity where you invest 100 for 10 years and then receive 100 ann... View the full answer