A perpetuity pays $4200 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 9.9%, what is the present value of this perpetual annuity?
A perpetuity pays $4200 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 9.9%, what is the present value of this perpetual annuity?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 25P
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A perpetuity pays $4200 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 9.9%, what is the
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