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Problem # 3 An investment offers a perpetual stream of $ 1 2 , 0 0 0 annual payments beginning eight years from today. Given

Problem #

3

An investment offers a perpetual stream of $

12, 000

annual payments beginning eight years from

today. Given an interest rate of

6 %,

what is the value of this investment four years from today?

Answer: $

167, 923.86

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