How much money was deposited 35 years ago at 10% per year interest if it is sufficient to provide a perpetual income of $10,000 per year beginning now, year 35?

What will be an ideal response?


P-1 = 10,000/0.10 = 100,000
P-35 = 100,000(P/F,10%,34)
= 100,000(0.0391)
= $3910

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