2) Two annuity dues in perpetuity have a common present value of $2, 000 and a commoneffective anmual interest rate i. The first anmuity makes payments of $100 at the beginningof every three years and the second makes payments of X at the beginning of every threemonths. Find X.

Given Informaion Effective Annual rate C = $100 Present value = 2,000 Present value of perpetunity…

2) Two annuity dues in perpetuity have a common present value of $2,000 and a common effective annual interest rate i. The first annuity makes payments of $100 at the beginning of every three years and the second makes payments of X at the beginning of every three months. Find X.

2) Two annuity dues in perpetuity have a common present value of $2,000 and a common effective annual interest rate i. The first annuity makes payments of $100 at the beginning of every three years and the second makes payments of X at the beginning of every three months. Find X.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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2) Two annuity dues in perpetuity have a common present value of $2, 000 and a common
effective anmual interest rate i. The first anmuity makes payments of $100 at the beginning
of every three years and the second makes payments of X at the beginning of every three
months. Find X.

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