A local bank will pay you $135 a year for your lifetime if you deposit $3,000 in the bank today. If you plan to live forever, what interestrate is the bank paying?Note: Enter your answer as a percent rounded to 2 decimal places.Interest rate%

local bank will pay you $135 a year for your lifetime if you deposit $3,000 in the bank today. If you plan to live forever, ate is the bank paying? Note: Enter your answer as a percent rounded to 2 decimal places. Interest rate %

local bank will pay you $135 a year for your lifetime if you deposit $3,000 in the bank today. If you plan to live forever, ate is the bank paying? Note: Enter your answer as a percent rounded to 2 decimal places. Interest rate %

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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A local bank will pay you $135 a year for your lifetime if you deposit $3,000 in the bank today. If you plan to live forever, what interest
rate is the bank paying?
Note: Enter your answer as a percent rounded to 2 decimal places.
Interest rate
%

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