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Suppose $10,000 is placed in an investment returning 7.5% compounded annually for 5 years. Why is this not a perpetuity? A : The finite time
Suppose $10,000 is placed in an investment returning 7.5% compounded annually for 5 years. Why is this not a perpetuity?
- A
- :
- The finite time period.
- B
- :
- The interest rate.
- C
- :
- The compounding frequency.
- D
- :
- The initial $10,000.
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