Q2. A perpetuity has a payment stream of P = 5t + 2 for t > 0 at an annual effective interest rate of r. Another perpetuity pays $40 continuously for the first ycar, $45 continuously for the second year, and so on, forever with an annual effective interest rate of 5%. The present valucs of the two perpetuitics are equal. Determine г.
Q2. A perpetuity has a payment stream of P = 5t + 2 for t > 0 at an annual effective interest rate of r. Another perpetuity pays $40 continuously for the first ycar, $45 continuously for the second year, and so on, forever with an annual effective interest rate of 5%. The present valucs of the two perpetuitics are equal. Determine г.
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.2: Exponential Functions
Problem 55E
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