Find the rate of interest which will make the difference

Reference no: EM13299164

Perpetuity X has level payments of $300 at the end of each year. Perpetuity Y also has end of year payments but they beginning at $45 and increase by $45 each year. Find the rate of interest which will make the difference in present values between these two perpetuities a maximum.

Reference no: EM13299164

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