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Question
You are willing to pay $15,625 to purchase a perpetuity which will pay you and your heirs $1,250 each year, forever. If your required rate of return does not change, how much would you be willing to pay if this were a 20-year, annual payment, ordinary annuity instead of a perpetuity?
a. $10,342
b. $11,931
c. $12,273
d. $13,922
e. $17,157
Answer
This answer is hidden. It contains 212 characters.
Related questions
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Q:
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Q:
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Q:
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