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2 A perpetual annuity is an annuity that pays a fixed amount forever. (They are rare in the US but they exist in the UK

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2 A perpetual annuity is an annuity that pays a fixed amount forever. (They are rare in the US but they exist in the UK where they are called consols.) If it pays amount A every year and if the effective yearly interest rate is 100r%, what is the cost of the annuity

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