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How much more is a perpetuity of $2000 worth than an annuity of the same amount for 10 years? Assume an interest rate of 10%

How much more is a perpetuity of $2000 worth than an annuity of the same amount for 10 years? Assume an interest rate of 10% and cash flows at the end of each period.

Multiple Choice

  • $7,710.87

  • $20,000

  • $9,710.87

  • $12,289.13

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