8. Roger and Samantha are brother and sister that will split an inheritance equally. Roger spends his share on a perpetuity due paying 60,000 for the first 20 years and 90,000 thereafter. The price of this perpetuity is based on an annual effective rate of 4%. Samantha spends her share on an n year deferred perpetuity due paying 308,961.6427 annually, and the price she pays for her perpetuity is based on an annual effective rate of 5%. Find n.
8. Roger and Samantha are brother and sister that will split an inheritance equally. Roger spends his share on a perpetuity due paying 60,000 for the first 20 years and 90,000 thereafter. The price of this perpetuity is based on an annual effective rate of 4%. Samantha spends her share on an n year deferred perpetuity due paying 308,961.6427 annually, and the price she pays for her perpetuity is based on an annual effective rate of 5%. Find n.
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 29CE
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Transcribed Image Text:8. Roger and Samantha are brother and sister that will split an inheritance
equally. Roger spends his share on a perpetuity due paying 60,000 for the first
20 years and 90,000 thereafter. The price of this perpetuity is based on an
annual effective rate of 4%. Samantha spends her share on an n year deferred
perpetuity due paying 308,961.6427 annually, and the price she pays for her
perpetuity is based on an annual effective rate of 5%. Find n.
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