Revision as of 21:13, 18 November 2023 by Admin (Created page with "'''Solution: C''' First calculate the three-year interest rate. <math display="block"> 1.06^3-1=0.191016 </math> This is an arithmetic increasing perpetuity. <math display="block"> \begin{aligned} & X\left[\frac{1}{0.191016}+\frac{1}{0.191016^2}\right]=655.56 \\ & X=20.08 \end{aligned} </math> {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 18'23
Answer
Solution: C
First calculate the three-year interest rate.
[[math]]
1.06^3-1=0.191016
[[/math]]
This is an arithmetic increasing perpetuity.
[[math]]
\begin{aligned}
& X\left[\frac{1}{0.191016}+\frac{1}{0.191016^2}\right]=655.56 \\
& X=20.08
\end{aligned}
[[/math]]
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