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An insurance company purchases a perpetuity-due providing a geometric series of quarterly payments for a price of 340,000 based on an annual effective interest rate

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An insurance company purchases a perpetuity-due providing a geometric series of quarterly payments for a price of 340,000 based on an annual effective interest rate of The first and second quarterly payments are 5000 and 5015, respectively Calculote 7.0% 7.39 7.4 8.3%

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