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A perpetuity pays $50 per year and interest rates are 9 percent. How much would its value change if interest rates decreased to 6 percent?

A perpetuity pays $50 per year and interest rates are 9 percent. How much would its value change if interest rates decreased to 6 percent? Multiple Choice $150.00 increase $150.00 decrease $277.78 increase $277.78 decrease

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