Your brother has offered to give you $100 starting next year and after that growing at 3% for next 20 years. You would like to calculate the value of this offer by calculating how much money you would need to deposit in the local bank so that the account will generate the same cash flow as he is offering you. Your local bank will guarantee a 6% annual interest rate so long as you have money in the account. a)how much money you need to deposit into the account today?
Paper#35492 | Written in 18-Jul-2015Price : $22