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PRESENT VALUE OF A PERPETUITY a.)What is the present value of a $400 perpetuity if the interest rate is 6%? Round your answer to the

PRESENT VALUE OF A PERPETUITY

a.)What is the present value of a $400 perpetuity if the interest rate is 6%? Round your answer to the nearest cent.

$

b.)If interest rates doubled to 12%, what would its present value be? Round your answer to the nearest cent.

$

***Please show how to solve on TI:BA II PLUS calc.

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