2) An annuity due in perpetuity pays X at the beginning of each year for 10 years and starting at the beginning of the 11th year increases by 2% each year. Find X if effective annual interest i 5% and the present value is $3,000. =

2) An annuity due in perpetuity pays X at the beginning of each year for 10 years and starting at the beginning of the 11th year increases by 2% each year. Find X if effective annual interest i 5% and the present value is $3,000. =

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Economics
2) An annuity due in perpetuity pays X at the beginning of each year for 10 years and starting at
the beginning of the 11th year increases by 2% each year. Find X if effective annual interest i = 5% and
the present value is $3,000.

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