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Given an interest rate of 6.75 percent per year, what is the value at Year 10 of a perpetual stream of $3,500 payments that b
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Answer #1
value of perpetuity at end of 19th year = $3500/0.0675
= $   51,851.852
Present value at year 10 = $51851.852/(1.0675)^9
=$28804.03
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