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A client is considering two possible investments, each pays $10,000 per year (end of year). (timeline not required) A 30-year annuity, 15 percent compounded annually,
A client is considering two possible investments, each pays $10,000 per year (end of year). (timeline not required)
- A 30-year annuity, 15 percent compounded annually, OR
- A perpetuity, 15 percent compounded annually.
Which investment would you recommend and why? (show all calculations)
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