assignmentcafe.com – TIBB offers a perpetuity that pays end of year annual payments of $120,000 forever. Present value of this contract is $1,900,000 today. What is the interest rate implied in this contract?/2022

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TIBB offers a perpetuity that pays end of year annual payments of $120,000 forever. Present value of this contract is $1,900,000 today. What is the interest rate implied in this contract?

 

 

 

Group of answer choices

 

 

 

4.45%

 

 

 

5.86%

 

 

 

6.32%

 

 

 

6.15%

 

 

 

4.29%