Problema perpetuity has the following payment stream p sub, Ask an Expert

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Problem:

A perpetuity has the following payment stream: p (sub t) = 10t for t>0. Another perpetuity pays $200 per year. These payments are made continuously throughout the year. The present values of the perpetuities are equal.

Required:

Question: Determine the annual effective interest rate.

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162217

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