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Suppose you have a perpetuity - immediate with annual payments. The first payment is $ 6 0 0 0 . The payments increase by 3

Suppose you have a perpetuity

-

immediate with annual payments. The first payment is $

6000 .

The payments increase by

3 %

per annum. Find the value of the perpetuity today if annual interest rate is

4 %

for

5

years,

7 %

thereafter.

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