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Problem 18.15 The present value of an annual perpetuity immediate of 150 is equal to the present value of an annual perpetuity immediate that pays

Problem 18.15

The present value of an annual perpetuity immediate of 150 is equal to the

present value of an annual perpetuity immediate that pays 100 at the end

of the first 20 years and 200 at the end of year 21 and each year thereafter.

Calculate

i.

Answer: 3.5265%

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