X is 45 years old and is conscious that he will be retiring in a few years, as as retirement investment plan he was advised as following An annuity that pays $150,000 at the end of each of the next 8 years A perpetuity that pays $150,000 forever with 1st payment due 15 years from today a What inves...

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X is 45 years old and is conscious that he will be retiring in a few years,

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X is 45 years old and is conscious that he will be retiring in a few years, as as retirement investment plan he was advised as following:

An annuity that pays $150,000 at the end of each of the next 8 years.
A perpetuity that pays $150,000 forever with 1st payment due 15 years from today

a. What investment will X choose if the Annual interest Rate is 7%

b. If the Annual interest Rate is reduced to 6%, will x change his decision. Give reasons

Posted Date: May 18, 2024 03:07 AM

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X is 45 years old and is conscious that he will be retiring in a few years,

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