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A perpetuity pays $130 per year and interest rates are 9.8 percent. How much would its value change if interest rates decreased to 8.3 percent?

A perpetuity pays $130 per year and interest rates are 9.8 percent. How much would its value change if interest rates decreased to 8.3 percent? (Round your answer to 2 decimal places.)

Change in value ____ ?

Did the value increase or decrease?

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