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(a) How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter if the perpetuity earns 2.5%
(a) How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter if the perpetuity earns 2.5% p.a. compunded quarterly? Give your answer rounded to the nearest dollar. (b) How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter if the perpetuity earns 2.5% p.a. compunded quarterly, but the first payment is at the end of the 9th quarter? Give your answer rounded to the nearest dollar. (c) What per annum nominal interest rate with interest compounded quarterly would be needed to achieve payments of $2,000 at the end of every quarter if the initial investment is $200,000
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