Calculate the annual effective interest rate

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1. Sydney buys a perpetuity immediate for 46530. The first payment is 200 and then they payments increase by 50 each year. Calculate the annual effective interest rate.

2. A rich aunt has promised you $ 2 comma 000$2,000 one year from today. In? addition, each year after? that, she has promised you a payment? (on the anniversary of the last? payment) that is 2 %2% larger than the last payment. She will continue to show this generosity for 2020 ?years, giving a total of 2020 payments. If the interest rate is 9 %9%?, what is her promise worth? today?

Reference no: EM131844018

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