A. 5.01% B. 11.45% C. 24.05% D. 20.04%

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 20E
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Problem 7.
The present value of a perpetuity paying 1 at the end of every 5 years is 0.67. Find the annual effective rate of interest i.
A. 5.01%
B. 11.45%
C. 24.05%
D. 20.04%
E. 30.06%
Transcribed Image Text:Problem 7. The present value of a perpetuity paying 1 at the end of every 5 years is 0.67. Find the annual effective rate of interest i. A. 5.01% B. 11.45% C. 24.05% D. 20.04% E. 30.06%
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