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In: Advanced Math

Perpetuity A pays $100 at the end of each year. Perpetuity B pays $25 at the end of each quarter.


Perpetuity A pays $100 at the end of each year. Perpetuity B pays $25 at the end of each quarter. The present value of perpetuity A at the effective rate of interest is $2,000. 

What is the present value of perpetuity B at the same annual effective rate of interest i?

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Colby Messinger answered 1 year ago
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