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An annual prize is to be established for the student that wins the math competition. The prize money comes from a perpetuity earning interest of
An annual prize is to be established for the student that wins the math competition. The prize money comes from a perpetuity earning interest of 2% p.a. compounded monthly. The prize will pay a fixed amount each year, starting in one years time. If the initial deposit is $2,000, how much is the prize worth? Give your answer rounded to the nearest cent.
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