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1. A) A perpetuity pays 7 dollars a year. If R is 11%, what is the present value? B) A fund pays 6 percent. Smith
1. A) A perpetuity pays 7 dollars a year. If R is 11%, what is the present value? B) A fund pays 6 percent. Smith puts $400 per month. How much will be in the account after 30 years? C) You will get a single payment of $275 in 9 years. R=5%. What is the present value of this?
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