Question: (*) Both Susan and Julie make purchases on the same day. Susan purchases a perpetuity that pays $1000 at the end of each year, using

(*) Both Susan and Julie make purchases on the same day.

(*) Both Susan and Julie make purchases on the same day. Susan purchases a perpetuity that pays $1000 at the end of each year, using an interest rate of 4%. Julie buys an annuity that pays $1000 at the end of each year for 40 years. Find the interest rate so that Julie's annuity has the same present value as Susan's perpetuity

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