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Business, 26.03.2020 05:26 thereal6ix9ine69

Mark A retirement plan offers a choice between two benefit patterns. Both are perpetuities. Pattern 1 has payments at the end of each year of 1000, 1040, 1080, ... Pattern 2 has payments at the end of each year of 1000, 1000(1 + k), 1000(1 + k)2, ... The two patterns of benefits are equal in present value at 8%. Determine k.

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Mark A retirement plan offers a choice between two benefit patterns. Both are perpetuities. Pattern...
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