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Given an interest rate of 9.5 percent per year, what is the value at date t = 8 of a perpetual stream of $1,000 payments

Given an interest rate of 9.5 percent per year, what is the value at date t = 8 of a perpetual stream of $1,000 payments with the first payment at date t = 13?

  • $7,468.27

  • $10,626.32

  • $7,175.40

  • $6,686.61

  • $7,321.83

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