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marishachu [46]
2 years ago
14

(5) On January l, 1988, Felix inherited a perpetuity with annual payments beginning in six months. The first payment was $3,000,

and after that the payments increased by 3% each year. Find the value of this perpetuity on January 1, 1995 if the annual effective interest rate was 6% from January I, 1988 through January I, 1996 and 4% thereafter.

Mathematics
1 answer:
valkas [14]2 years ago
8 0

Answer:

Hence the value of this perpetuity on January 1, 1995 will be $55993.18404

Step-by-step explanation:

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