How much would you be willing to pay in given conditions

Reference no: EM131926169

Question: You are willing to pay $25,000 now to purchase a perpetuity which will pay you and your heirs $2,200 each year, forever, starting at the end of this year. If your required rate of return does not change, how much would you be willing to pay if this were a 15-year, annual payment, ordinary annuity instead of a perpetuity? show the answer in details please.

Reference no: EM131926169

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