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Four years ago, Jacques purchased a perpetuity that agrees to pay him and his heirs $ 1 5 0 per month forever. At the time
Four years ago, Jacques purchased a perpetuity that agrees to pay him and his heirs $ per month forever. At the time of purchase, Jacques was expecting to earn an annual return of but in the intervening years, the economy and the available investment alternatives have changed. In todays market, it is now reasonable to anticipate an annual return of By how much would you expect the value of Jacquess perpetuity to change from when he purchased it until today?
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