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A perpetuity-immediate makes annual payments. The payments are $20 each year for the first 5...

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A perpetuity-immediate makes annual payments. The payments are $20 each year for the first 5 years. Beginning in year 6, each payment is X % greater than its prior payment. At an annual effective interest rate of 8%, the present value of the perpetuity is $486.26. Find X. (a) 4.4 (b) 4.5 (c) 4.6 (d) 4.7 (e) 4.8

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