Your investor promises you an investment opportunity that will yield a rate of return of 12⁹ per year. He asks you to invest $10,000 now, and pay $7000 per year for 3 years starting years from now. Determine the equivalent amount of money that you can withdraw ever year forever starting 5 years from now?

Your investor promises you an investment opportunity that will yield a rate of return of 12⁹ per year. He asks you to invest $10,000 now, and pay $7000 per year for 3 years starting years from now. Determine the equivalent amount of money that you can withdraw ever year forever starting 5 years from now?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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