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You are given the following information about a perpetuity with annual payments: i. The first 15 payments are each 2,500, with the first payment to
You are given the following information about a perpetuity with annual payments: i. The first 15 payments are each 2,500, with the first payment to be made three years from now. ii. Beginning with the 16 th payment, each payment is k% larger than the previous payment. iii. Using an annual effective interest rate of 3.5%, the present value of the perpetuity is 115,000
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