Annual effective interest rate


Jeff and Jason spend X dollars to buy an annuity. Jeff buys a perpetuity-immediate, which makes annual payments of 30. Jason purchases a 10-year annuity-immediate, also with annual payments. The first payment is 53, with each and every subsequent payment k% larger than the previous year's payment. Both annuities employ an annual effective interest rate of k%. Calculate k.

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Basic Statistics: Annual effective interest rate
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