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Business, 18.02.2020 20:25 siniyalee30

3. How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years? Assume a 10% interest rate and cash flows at end of period. A. $297.29 B. $1,486.44 C. $1,635.08 D. $2,000.00 Difference = $1,000/.10 - $1,000[1/.10 - 1/.10(1.10)20] = $10,000 - $8,513.56 = $1,486.44

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3. How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years? As...
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