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Calculate the Present Value of a Perpetuity That Will Pay

Question 34

Multiple Choice

Calculate the present value of a perpetuity that will pay out $1,500 every month and the first payment is to be made 10 years from now. The interest rate earned is 9% compounded annually.


A) $81,587
B) $82,199
C) $92,761
D) $88,546
E) $87,913

Correct Answer:

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