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Jack inherited a perpetuity-due, with annual payments of 9,000. He immediately exchanged the perpetuity for a 20-year annuity due having the same present value. The
Jack inherited a perpetuity-due, with annual payments of 9,000. He immediately exchanged the perpetuity for a 20-year annuity due having the same present value. The annuity-due has annual payments of X. All the present values are based on an annual effective interest rate of 2% for the first 8 years and 4% thereafter, Calculatex 14,572 14,699 15,879 16,386 16,894
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