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A local bank is running the following advertisement in the newspaper: For just $4,000 we will pay you $320 forever! The fine print in the

A local bank is running the following advertisement in the newspaper: "For just

$4,000

we will pay you

$320

forever!" The fine print in the ad says that for a

$4,000

deposit, the bank will pay

$320

every year in perpetuity, starting one year after the deposit is made. What interest rate is the bank advertising (what is the rate of return of this investment)?

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