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A perpetuity-immediate pays X per year. Adrian receives the first 10 payments, Bill receives the next 10 payments, and Cole receives the remaining payments. Adrian's

A perpetuity-immediate pays X per year. Adrian receives the first 10 payments, Bill receives the next 10 payments, and Cole receives the remaining payments. Adrian's share of the present value of the original perpetuity is 60% and Cole's share is K. Find the effective interest rate and K. (Answer: i = 9.60%, K = 16%)

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