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A perpetuity is set to pay $400 every year. a. Find the present value of this perpetuity assuming a 7% interest rate. Show your calculations.

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A perpetuity is set to pay $400 every year. a. Find the present value of this perpetuity assuming a 7% interest rate. Show your calculations. Round to two decimal places. b. Find the present value of this perpetuity assuming interest rates doubled to 14%. Show your calculations. Round to two decimal places

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