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Your friend promises you a perpetuity of paying you some money in each year. If the first payment occurs in year 1 , the present

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Your friend promises you a perpetuity of paying you some money in each year. If the first payment occurs in year 1 , the present value of the promise is $100 and the interest rate is 10%, which of the following is the present value at year zero for the payment made at year 2 ? a. $8.26 b. $6.83 C. $5.64 d. $3.86 e. None of the above

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