You have decided to buy perpetual bond

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1. You plan to deposit $ 800$800 in a bank account now and $ 200$200 at the end of the year. If the account earns 2 %2% interest per? year, what will be the balance in the account right after you make the second? deposit?

2. You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 10 %10%. If the bond initially costs $ 1 comma 000$1,000?, what is the payment every? year?

Reference no: EM131844023

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