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Investment A makes annual payments of $825.57 for each of the next 10 years, while investment B makes annual payments of $547.21 per year forever.
Investment A makes annual payments of $825.57 for each of the next 10 years, while
investment B makes annual payments of $547.21 per year forever. At what interest rate
would you be indifferent between the two investments? Assume payments for both
investments begin today.
The interest rate is %
Note: Please retain at least 4 decimal places in your calculation and 2 decimal places
in the final answer.
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