An insurance company has made you the following retirement, Financial Management

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An insurance company has made you the following retirement

An insurance company has made you the following retirement offer. If you pay them $100,000 now, you will receive payments of $8000 a year for 10 years. After this they will pay you $9000 a year in perpetuity (i.e. for ever). What interest rate are you making on your retirement money?

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Financial Management: An insurance company has made you the following retirement

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Financial Management: An insurance company has made you the following retirement

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