Perpetuity pays $4000 per year, as follows: in odd-numbered years, a payment of $4600 is made at
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Perpetuity pays $4000 per year, as follows:
in odd-numbered years, a payment of $4600 is made at the end of the year. in even-numbered years, a payment of $1000 is made at the end of each quarter. Interest is at an annual effective rate of 8%. At the beginning of an odd-numbered year, this perpetuity is exchanged for another of equal value which provides
the semi-annual payments, the first payment due six months hence, What in the semiannual payment of the new perpetuity? Ans. $1989.36
Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
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