Find q if the present values of x and y are equal

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Reference no: EM132027565

A thirty year annuity X has annual payments of $2,000 at the beginning of each year for twelve years, then annual payments of $3,000 at the beginning of each year for eighteen years.

A perpetuity Y has payments of $Q at the end of each year for twenty years, then payments of $3Q at the end of each year thereafter.

The present values of X and Y are equal when calculated using the annual effective discount rate of 12%. Find Q. (Round your answer to the nearest cent.)

Reference no: EM132027565

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