A couple of generations ago, a relative of John wanted to share her wealth with family members and decided to open a spe
Posted: Sun May 29, 2022 6:19 pm
A couple of generations ago, a relative of John wanted to share
her wealth with family members and decided to open a special bank
account. The purpose of such financial instrument was to pay out an
annuity forever, which would be shared among all family members.
Given that the initial deposit was 285,835 dollars and the
prevailing interest rate at that time was 8 %, compounded annually,
find the value of the annuity this family collects every
year.
her wealth with family members and decided to open a special bank
account. The purpose of such financial instrument was to pay out an
annuity forever, which would be shared among all family members.
Given that the initial deposit was 285,835 dollars and the
prevailing interest rate at that time was 8 %, compounded annually,
find the value of the annuity this family collects every
year.