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Nathaniel purchases a deferred perpetuity that will provide $20,000 payments every two years after a waiting period. He purchases the annuity for $75,000, and the
Nathaniel purchases a deferred perpetuity that will provide $20,000 payments every two years after a waiting period. He purchases the annuity for $75,000, and the annual effective interest rate is 8%. How long is the waiting period (i.e. how long between the time of purchase and the first payment)? Give your answer in years, correct to 3 decimal places
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