A perpetuity y has payments of q at the end of each year


A thirty year annuity X has annual payments of $2,000 at the beginning of each year for twelve years, then annual payments of $3,000 at the beginning of each year for eighteen years.

A perpetuity Y has payments of $Q at the end of each year for twenty years, then payments of $3Q at the end of each year thereafter.

The present values of X and Y are equal when calculated using the annual effective discount rate of 12%. Find Q. (Round your answer to the nearest cent.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A perpetuity y has payments of q at the end of each year
Reference No:- TGS02821033

Expected delivery within 24 Hours