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A perpetuity immediate pays $100 per year. Immediately after the 5th payment, the perpetuity is exchanged for a 25 year annuity immediate that will pay
A perpetuity immediate pays $100 per year. Immediately after the 5th payment, the perpetuity is exchanged for a 25 year annuity immediate that will pay X at the end of the first year after the exchange. Each subsequent annual payment will be 8%greater than the preceding payment. The annual effective interest rate is 8%. Calculate X.
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