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A perpetual annuity of $10 per year has a present value of $125,000. Therefore, a. the discount rate must be 10% b. the discount rate
A perpetual annuity of $10 per year has a present value of $125,000. Therefore,
a. | the discount rate must be 10% | |
b. | the discount rate cannot be calculated without knowing the annuitys length | |
c. | $125,000 plus $10 per year is the investment required to create the annuity | |
d. | $125,000 is the investment required to create the annuity |
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