# finance

Suppose the borrowing rate r_B = 10\%r
B

=10% compounded annually. However,

the lending rate (or equivalently, the interest rate on deposits) is

only 8\%8% compounded annually. Compute the difference between the upper

and lower bounds on the price of an perpetuity that pays \(A = 10,000\\)\$ per

year.

1. 👍
2. 👎
3. 👁
1. 25000

1. 👍
2. 👎

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