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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

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 10?

a.$8.26

b.$6.83

c.$5.64

d.$3.86

e.None of the above

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