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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
1. If the interest rate is 7%, what is the value of the following three investments?
a. An investment that offers you $100 a year in perpetuity with the payment at the end of each year.
b. A similar investment with the payment at the beginning of each year.
c. A similar investment with the payment spread evenly over each year.
2. Refer back to Sections 2.2–2.4. If the rate of interest is 8% rather than 10%, how much would you need to set aside to provide each of the following?
a. $1 billion at the end of each year in perpetuity.
b. A perpetuity that pays $1 billion at the end of the first year and that grows at 4% a year.
c. $1 billion at the end of each year for 20 years.
d. $1 billion a year spread evenly over 20 years.
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