Find the value of x that will allow to achieve goal

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Problem 1: 10 years from now, you want to have enough money in your investment account to purchase an annual-payment perpetuity-due which will pay you $10000 in the first year of the perpetuity, and then each subsequent annual perpetuity payment will increase by $1000 over the prior payment. To achieve this, you make a deposit of X onto your account 4 years from now, and a deposit of 2X into your account 8 years from now. Assume an annual nominal rate of interest of 10% convertible quarterly. Find the value of X that will allow you to achieve your goal.

Reference no: EM132942682

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