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A perpetuity makes annual payments at the end of each year. The perpetuity pays 10 at the end of year 1, 12 at the end
A perpetuity makes annual payments at the end of each year. The perpetuity pays 10 at the end of year 1, 12 at the end of year 2,14 at the end of year 3,..., 28 at the end of year 10. After year 10,the payments remain constant at 30. The annual effective interest rate is 5%. Calculate the present value of the perpetuity.
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