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At an annual effective rate of interest ii, the following 2 payment streams have equal...

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Accounting

At an annual effective rate of interest ii, the following 2 payment streams have equal present values.

(i) $690 paid at the end of each year for 12 years.

(ii) A 12-year deferred perpetuity-immediate of $345 per year (i.e. first payment at time 13) .

Determine the effective annual rate of interest.

i= %

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