You are given the following about two annuities-immediate: Annuity A pays 300 at the end of each year for 18 years. Annuity B pays 399.865 at the end of each year for 9 years. At an annual effective rate of interest i, the PV of both annuities are equal. Caleulate i. Possible Answers 12% 11% 10% D13% 14%

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
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You are given the following about two annuities-immediate:
Annuity A pays 300 at the end of each year for 18 years.
d ofc
Annuity B pays 399.865 at the end of each year for 9 years.
At an annual effective rate of interest i, the PV of both annuities are equal.
Calculate i.
Ponible Answers
12%
11%
C 10%
D 13%
14%
Transcribed Image Text:You are given the following about two annuities-immediate: Annuity A pays 300 at the end of each year for 18 years. d ofc Annuity B pays 399.865 at the end of each year for 9 years. At an annual effective rate of interest i, the PV of both annuities are equal. Calculate i. Ponible Answers 12% 11% C 10% D 13% 14%
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