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A perpetuity has annual payments. The first payment is for $ 3 2 0 and then payments increase by $ 3 0 each year until

A perpetuity has annual payments. The first payment is for $

320

and then payments increase by $

30

each year until they become level at $

980 .

Find the value of this annuity at the time of the first payment using an annual effective interest rate of

4 %

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