What is the equal annual amount of money you have to save to guarantee yourself an...
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What is the equal annual amount of money you have to save to guarantee yourself an annual income to perpetuity of $55,000 starting in 42 years from now? You make the first payment in two years from now and the last payment in 42 years (i.e., you make payments at t = 2, 3, 4, ..., 42; and you will receive the first payment of the perpetuity at t = 42). Assume an interest rate of 7% (EAR). What is the equal annual amount of money you have to save to guarantee yourself an annual income to perpetuity of $55,000 starting in 42 years from now? You make the first payment in two years from now and the last payment in 42 years (i.e., you make payments at t = 2, 3, 4, ..., 42; and you will receive the first payment of the perpetuity at t = 42). Assume an interest rate of 7% (EAR).
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Perpetuity55000 Value of Perpetuity at time42 years ... View the full answer
Related Book For
Personal Financial Planning
ISBN: 9780357438480
15th Edition
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Posted Date:
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