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You are considering buying a perpetuity contract from your insurance company that will pay you $500 annually where the payment will grow by 3% each

You are considering buying a perpetuity contract from your insurance company that will pay you $500 annually where the payment will grow by 3% each year. Using a discount rate of 9%, the most you should be willing to pay for this contract is closest to:

$5,556

$8,333

$12,367

$16,667

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