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Problem 1 Annuity and Perpetuity a) Derive PV formula for a perpetuity with payment a: and interest equal to r b) Derive PV formula for

Problem 1 Annuity and Perpetuity a) Derive PV formula for a perpetuity with payment a: and interest equal to r b) Derive PV formula for annuity with payment at, maturity T, interest rate r

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