How much should you expect to receive annually if you deposit $ 1 0 0 , 0

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Question:

How much should you expect to receive annually if you deposit $

100, 000

in an account that will return annual payments for ever, but never return the principle. The prevailing interest rate is

2 % .

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Feb 15, 2024 02:21 AM

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How much should you expect to receive annually if you deposit $ 1 0 0 , 0

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Expert Answer:

The question is asking about a concept known as perpetuity Perpetuit... View the full answer

Principles of Finance

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