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A perpetuity pays $220 per year and interest rates are 8.3 percent. How much would its value change if interest rates decreased to 6.8 percent?

A perpetuity pays $220 per year and interest rates are 8.3 percent. How much would its value change if interest rates decreased to 6.8 percent? (Round your answer to 2 decimal places.)

Change in value $_____________

Did the value increase or decrease?

O	Decrease
O	Increase

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