The answer is 15963.86 Please show step by step and formulas used. Problem 21.4...
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Finance
The answer is 15963.86
Please show step by step and formulas used.
Problem 21.4 A perpetuity pays $1,200 at the beginning of each year with the first payment being made immediately. The trust funding the perpetuity will earn an annual effective interest rate of 10% for the first 10 years, 8% for the second 10 years and 5% thereafter. Calculate the amount needed to fund the perpetuity immediately before the first payment
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