How many years does it take for an annuity to reach


1. How many years does it take for an annuity to reach three-quarters the value of a perpetuity if the interest rate is 5%? If the interest rate is r? To reach fraction f of the value?

2. Recall from memory the annuity formula.

3. What is the PV of a 360-month annuity paying $5 per month, beginning at $5 next month (time 1), if the monthly interest rate is a constant 0.5%/month (6.2%/year)?

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Financial Management: How many years does it take for an annuity to reach
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