Answered: Perpetuities A local bank will pay you…

Perpetuities A local bank will pay you $100 a year for your lidetime if you deposit $2,500 in the bank today. If you live forever, what interest rate is the bank paying you?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 13E

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Perpetuities

A local bank will pay you $100 a year for your lidetime if you deposit $2,500 in the bank today. If you live forever, what interest rate is the bank paying you?

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