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QUESTION 6 A perpetuity immediate pays 100 per year. Immediately after the tenth payment, the perpetuity is exchanged for a 20 year annuitymediate that will

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QUESTION 6 A perpetuity immediate pays 100 per year. Immediately after the tenth payment, the perpetuity is exchanged for a 20 year annuitymediate that will pay X at the end of the first year. Each subsequent annual payment will be greater than the preceding payment. The annual efective rate of interest is 57. Calculate X A) 95.48 B) 110.33 C) 125.18 D) 132.99 E) 159.03

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