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Today you paid$345,000 for an investmentthat provides$11,700 a year forever (that is, in perpetuity). What rate of return are you earning on this investment? Assume
Today you paid$345,000 for an investmentthat provides$11,700 a year forever (that is, in perpetuity). What rate of return are you earning on this investment? Assume the first payment is in one year.
A) 3.64%
B) 3.18%
C) 1.87%
D) 3,28%
E) 3.39%
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