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You are given an effective annual rate of interest i=5%. Which of the following values are greater than or equal to $20 ? 1. The
You are given an effective annual rate of interest i=5%. Which of the following values are greater than or equal to $20 ? 1. The present value of an annuity of $1 per year payable continuously for 50 years. 2. The accumulated value in 5 years of annual payments starting at $5 and decreasing by $1 per year. (Payments start one year from now.) 3. The present value of a perpetuity paying $1 every 5 years and increasing by $1 each payment. (Payments start five years from now.) A (1) B (2) C (3) D (1) and (2) E None of (1), (2), or (3)
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