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What is the value in year 0 (present value) of a perpetuity that pays $400 every year if the first payment arrives 4 years from
What is the value in year 0 (present value) of a perpetuity that pays $400 every year if the first payment arrives 4 years from today and annual r = 1.5% forever? In other words, the payments look like this:
year 0 1 2 3 4 5 6 7
payment 0 0 0 0 400 400 400 400
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