Video: Perpetuity - Concept
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Check out the translation for "perpetuity" on SpanishDictionary.com!
Check out the translation for "perpetuity" on SpanishDictionary.com!
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A perpetuity-immediate pays 100 per year. Immediately after thefifth payment, the perpetuity is exchanged for a 25-year annuity-immediate that will pay X at the end of the first year. Eachsubsequent annual payment will be 5% greater than the precedingpayment. The annual effective rate of interest is 5%. CalculateX.A) 94B)64C)54D)74E)84HINT: 54 is not the answer
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