Sydney wins a prize. She has a choice of receiving a payment of $60,000.00 immediately,...
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Finance
Sydney wins a prize. She has a choice of receiving a payment of $60,000.00 immediately, or of receiving a deferred perpetuity with $10, 144.00 annual payments with the first payment occurring in exactly four years. Find the present value of this perpetuity when the account is governed by an annual effective rate of 5%. Also Find the present value of this perpetuity when the account is governed by an annual effective rate of 6%.
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