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Bob buys a perpetuity at time t-0 years for P. The perpetuity makes annual payments beginning at t -8. The first payment is for 500.
Bob buys a perpetuity at time t-0 years for P. The perpetuity makes annual payments beginning at t -8. The first payment is for 500. Each annual payment thereafter is decreased by 10 until a payment of 200 is reached. Subsequent payments remain level at 200 If the annual effective interest rate is 4%, find the value of P. Round your answer to the nearest whole number
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