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Alexxx [7]
3 years ago
8

A thirty-year annuity X has annual payments of $1,000 at the beginning of each year for twelve years, then annual payments of $2

,000 at the beginning of each year for eighteen years. A perpetuity Y has payments of $Q at the end of each year for twenty years, then payments of $3Q at the end of each year thereafter. The present values of X and Y are equal when calculated using an annual effective discount rate of 10%. Find Q.

Business
1 answer:
Fiesta28 [93]3 years ago
8 0

Answer:

The value of Q is $1069.89

Explanation:

Please find attached

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