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Your friend promises you a perpetuity of $1 every year. If the first payment occurs in year 1 and the present value of the promise

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Your friend promises you a perpetuity of $1 every year. If the first payment occurs in year 1 and the present value of the promise is $20, which of the following is right about the interest rate? a. 12.50% b. 10.00% c. 8.33% d. 5.00% e. None of the above

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