What interest rate is the bank advertising

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Reference no: EM133494906

Question: content area top Part 1 A local bank is running the following advertisement in the? newspaper: "For just $1000 we will pay you ?$100 forever!" The fine print in the ad says that for a $1000 ?deposit, the bank will pay $100 every year in? perpetuity, starting one year after the deposit is made. What interest rate is the bank advertising? (what is the IRR of this? investment)?

Reference no: EM133494906

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