Find r for wing sze

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Problem 1: Wing Sze has an annuity immediate paying $470.00 bi-weekly for 3 years. Kai has a perpetuity immediate, also paying $470.00 every two weeks. For very small values of the effective rate per period r, Kai's perpetuity is worth much more than Wing Sze's annuity. (Try it yourself!) For very large values of r, they are worth almost the same. So somewhere in between, there is a value of r that makes Kai's perpetuity worth exactly 3 times as much as Wing Sze's annuity. Find r.

Reference no: EM132952681

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