The student who wins the Fancy Est Sunglasses Contest will receive a cash prize each year. The source of the prize money is a perpetuity that bears interest at 2% compounded monthly. The prize money is paid out in fixed amounts every year starting from one year. If my initial deposit is $2,000, what is the value of the prize? Please round your answer to the nearest cent.
The student who wins the Fancy Est Sunglasses Contest will receive a cash prize each year. The source of the prize money is a perpetuity that bears interest at 2% compounded monthly. The prize money is paid out in fixed amounts every year starting from one year. If my initial deposit is $2,000, what is the value of the prize? Please round your answer to the nearest cent.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P
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The student who wins the Fancy Est Sunglasses Contest will receive a cash prize each year. The source of the prize money is a perpetuity that bears interest at 2% compounded monthly. The prize money is paid out in fixed amounts every year starting from one year. If my initial deposit is $2,000, what is the value of the prize? Please round your answer to the nearest cent.
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