Perpetuities and Annuities - Corporate Finance - Ivo Welch
Perpetuities and Annuities - Corporate Finance - Ivo Welch
Perpetuities and Annuities - Corporate Finance - Ivo Welch
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An insurance company offers a retirement annuity that<br />
pays $100,000 per year for 15 years <strong>and</strong> sells for $806,070.<br />
What is the implied interest rate (here called an IRR—more<br />
soon) that this insurance company is offering you?<br />
41/1