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You want to establish a perpetuity that pays $6,500 per year. Your banker will establish such an account if you deposit $97,000 in her institution.
You want to establish a perpetuity that pays $6,500 per year. Your banker will establish such an account if you deposit $97,000 in her institution. Calculate the rate that she is paying on the deposit.
Group of answer choices
9.43%
6.70%
5.12%
6.07%
14.92%
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