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Question A perpetuity pays $500 at the end of each year for 7 years and $200 at the end of each year thereafter. The effective

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Question A perpetuity pays $500 at the end of each year for 7 years and $200 at the end of each year thereafter. The effective annual rate of interest is 4%. Find the PV of this perpetuity at time 0. (Select the closest answer) Possible Answers A 4200 B 5300 6800 D 7200 E 8300

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