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Question 3 (1 point) A perpetuity pays $1 at the end of each of the first n years, $2 at the end of each of
Question 3 (1 point) A perpetuity pays $1 at the end of each of the first n years, $2 at the end of each of the second n years, $3 at the end of each of the third n years, and so on. The annual effective interest rate is 8%. The present value at time 0 of this perpetuity is $14.2888. Calculate n. a) 23 b) 26 c) 27 d) 24 e) 25
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