Sense that they have the same present values.

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By scenario A there is an offer to pay at the rate of $10,000 per annum, continu- ously, for the next 10 years. By scenario B it is offered to pa 10 years. The force of interest applying to both scenarios is 12%. Find the value o y the amont X at the end of each of the next f X sich that you are indifferent between these two scenarios in the sense that they have the same present values.

Reference no: EM131814600

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