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Given the following: i) A level perpetuity with annual payments of 20 and first payment at the end of n years has a present value
Given the following: i) A level perpetuity with annual payments of 20 and first payment at the end of n years has a present value of 279. ii) An increasing perpetuity with annual payments of 20, 40, 60, etc., and first payment at the end of n years has a present value of 6920. Both present values are computed using the same annual effective interest rate. Compute n Possible Answers 11 12 13 14 15
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