Question #122947
what annual deposits are needed for 10 years to provide for a perpetuity of $3000 per year with the first payment due at the end of 11, 1 year after the final deposit with J1 = 8% per annum
1
Expert's answer
2020-06-30T18:34:35-0400

x0.08=3000x*0.08=3000

x=37,500x=37,500 - amount at the end of 11 years

37,500=A1.08(11.0810)0.081.0837,500=A*\frac{1.08(1-1.08^{10})}{-0.08}*1.08

A=2,219.31A=2,219.31

A - annual deposit


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