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If an annuity can make an unending number of equal payments at the end of the interest periods, it is called a perpetuity. If a
If an annuity can make an unending number of equal payments at the end of the interest periods, it is called a perpetuity. If a lump sum investment of A\" is needed to result in n periodic payments of R when the interest rate per period is i, then 1 1 + f 7" A\" = R[]. 1 (a) Evaluate lirn A to find a formula for the lump sum payment for a perpetuity. nm '7 Your answer cannot be understood or graded. More Information X (b) Find the lump sum investment needed to make payments of $200 per month in perpetuity if interest is 6%, compounded monthly. (Round your answer to the nearest cent.) $ X
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