8. Deposits of 1000 are placed into a fund at the end of each year forthe next 25 years for the subsequent purchase of a perpetuity. Fiveyears after the last deposit, annual payments commence and continueforever. If i = .09 then find the amount of each payment.

Future value of annuity is the amount accumulated over the period of time and amount of deposit made…

3. Deposits of 1000 are placed into a fund at the end of each year the next 25 years for the subsequent purchase of a perpetuity. Fi years after the last deposit, annual payments commence and contin forever. If i= .09 then find the amount of each payment.

3. Deposits of 1000 are placed into a fund at the end of each year the next 25 years for the subsequent purchase of a perpetuity. Fi years after the last deposit, annual payments commence and contin forever. If i= .09 then find the amount of each payment.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

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8. Deposits of 1000 are placed into a fund at the end of each year for
the next 25 years for the subsequent purchase of a perpetuity. Five
years after the last deposit, annual payments commence and continue
forever. If i = .09 then find the amount of each payment.

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