Ed Cahill owns a farm near a small town. In exchange for allowing a road to pass
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Ed Cahill owns a farm near a small town. In exchange for allowing a road to pass through his farmland, hte town has agreed to pay Ed and future owners of the property $135 per year in perpetuity. The town offers, and Ed accepts, a one time payment of $1,125 in exchange for his giving up the right to receive the annual $135 payment. What is the implicit interest rate that Ed and the township used to arrive at this settlement?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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