What is the growth rate, If i invest the entire 20 million

What is the growth rate

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Reference no: EM13287672

Perpetuity and growth rate: 20million inheritence at a discount rate of 5%. I found a perpetuity investment that promises an intial payout of 2.0% at the end of the first year and subsequent payments that grow each year. If i invest the entire 20 million in this pertpetuity what is the growth rate that i will need to break even?

a)1%
b)2%
c)3%
d)4%

Reference no: EM13287672

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