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A perpetuity-immediate has monthly payments that increase by 5% every 12 payments. The initial 12 payments are 500 each. The present value of this perpetuity-immediate,
A perpetuity-immediate has monthly payments that increase by 5% every 12 payments. The initial 12 payments are 500 each. The present value of this perpetuity-immediate, using an annual effective interest rate of 8% is X. Calculate X.
(A) 191,881 (B) 197,637 (C) 200,009 (D) 207,231 (E) 209,546
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