Interest rate with annuity. What are you getting in terms of interest rate if you are willing to pay $11,000 today for an annual stream of payments of $2,200 for the next 20 years? The next 40 years? The next 100 years? Forever?
Interest rate with annuity. What are you getting in terms of interest rate if you are willing to pay $11,000 today for an annual stream of payments of $2,200 for the next 20 years? The next 40 years? The next 100 years? Forever?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![**Interest Rate with Annuity**
What are you getting in terms of interest rate if you are willing to pay $11,000 today for an annual stream of payments of $2,200 for the next 20 years? The next 40 years? The next 100 years? Forever?
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What are you getting in terms of interest rate if you are willing to pay $11,000 today for an annual stream of payments of $2,200 for the next 20 years?
[ ] % (Round to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8c403c1-73da-4878-97dd-7583351688c0%2F9a7b3da3-9933-4713-a51b-cffd7b6f8a7b%2Fy0ty1v_processed.png&w=3840&q=75)
Transcribed Image Text:**Interest Rate with Annuity**
What are you getting in terms of interest rate if you are willing to pay $11,000 today for an annual stream of payments of $2,200 for the next 20 years? The next 40 years? The next 100 years? Forever?
---
What are you getting in terms of interest rate if you are willing to pay $11,000 today for an annual stream of payments of $2,200 for the next 20 years?
[ ] % (Round to two decimal places.)
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