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Example 8 The rate of interest is 5%. p.a. What is the present value of $18,000 first receivable in 5 years time and thereafter annually

Example 8

The rate of interest is 5%. p.a.

What is the present value of $18,000 first receivable in 5 years time and thereafter annually in perpetuity?

How do you arrive at the answer step by step ?

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