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A perpetuity pays $200 per year and interest rates are 8.5 percent. How much would its value change if interest rates increased to 10.0 percent?

A perpetuity pays $200 per year and interest rates are 8.5 percent. How much would its value change if interest rates increased to 10.0 percent? (Round your answer to 2 decimal places.)

Change in value

Did the value increase or decrease?

	Increase
	Decrease

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