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A perpetuity - immediate that pays 1 0 0 per year is exchanged for a 2 5 - year annuity - immediate that will pay

A perpetuity-immediate that pays 100 per year is exchanged for a 25-year annuity-immediate that will pay x at the end of the first year. Each subsequent annual payment will be 8% greater than the preceding payment. The annual effective rate of interest is 8%. Calculate x.

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