7. What is the rate of return you would earn if you paid $1,950 for a...

Question

Question

7. What is the rate of return you would earn if you paid $1,950 for a perpetuity that pays $185 per year?

Answer 1

Answer #1

Answer

Amount =interest /r

$1950=$185/r

$1950*r=$185

r=$185/$1950

r=0.0949

r=9.48%

Answer 2

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