Interest rate with annuity. What are you getting in terms of interest rate if you are willing to pay $10,000 today for an annual stream of payments of $2,300 for the next 10 years? The next 20 years? The next 50 years?
Interest rate with annuity. What are you getting in terms of interest rate if you are willing to pay $10,000 today for an annual stream of payments of $2,300 for the next 10 years? The next 20 years? The next 50 years?
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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Interest rate with
annuity.
What are you getting in terms of interest rate if you are willing to pay
$10,000
today for an annual stream of payments of
$2,300
for the next
10
years? The next
20
years? The next
50
years? Forever?What are you getting in terms of interest rate if you are willing to pay
$10,000
today for an annual stream of payments of
$2,300
for the next
10
years?nothing%
(Round to two decimal places.)What are you getting in terms of interest rate if you are willing to pay
$10,000
today for an annual stream of payments of
$2,300
for the next
20
years?nothing%
(Round to two decimal places.)What are you getting in terms of interest rate if you are willing to pay
$10,000
today for an annual stream of payments of
$2,300
for the next
50
years?nothing%
(Round to two decimal places.)What are you getting in terms of interest rate if you are willing to pay
$10,000
today for an annual stream of payments of
$2,300
forever?nothing%
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