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5) A perpetuity-immediate pays 10 annually for the first 15 years. After 15 years, the payment amount decreases by I each year until it reaches

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5) A perpetuity-immediate pays 10 annually for the first 15 years. After 15 years, the payment amount decreases by I each year until it reaches an amount of I. The payments of 1 continue forever. The annual effective rate of interest is 8%. Calculate the present value of this perpetuity. his marks)

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