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A perpetuity has the following payment stream: p (sub t) = 10t for t>0. Another perpetuity pays $200 per year. These payments are made continuously
A perpetuity has the following payment stream: p (sub t) = 10t for t>0. Another perpetuity pays $200 per year. These payments are made continuously throughout the year. The present values of the perpetuities are equal. Determine the annual effective interest rate.
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