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Value of Perpetuity

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LifeisLove | 03:08 Tue 13th Mar 2007 | Business & Finance
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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?
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