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Alberto has an investment portfolio that contains an annuity and a perpetuity immediate. His annuity pays $ 4 0 0 at the end of each

Alberto has an investment portfolio that contains an annuity and a perpetuity

immediate. His annuity pays $

400

at the end of each quarter for

10

years and his perpetuity pays

200

at the end of each month forever. Assume the annual interest rate is i for the first ten years

and j thereafter. Find an expression for the present value of his

portfolio in terms of the rates i and j

.

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