3. Deposits of 1000 are placed into a fund at the end of each year the next 25 years for the subsequent purchase of a perpetuity. Fi years after the last deposit, annual payments commence and contin forever. If i= .09 then find the amount of each payment.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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8. Deposits of 1000 are placed into a fund at the end of each year for
the next 25 years for the subsequent purchase of a perpetuity. Five
years after the last deposit, annual payments commence and continue
forever. If i = .09 then find the amount of each payment.
Transcribed Image Text:8. Deposits of 1000 are placed into a fund at the end of each year for the next 25 years for the subsequent purchase of a perpetuity. Five years after the last deposit, annual payments commence and continue forever. If i = .09 then find the amount of each payment.
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