The present value of a perpetuity of 1,000 paid at the end of each year plus the present value of a perpe- tuity of 1,50
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The present value of a perpetuity of 1,000 paid at the end of each year plus the present value of a perpe- tuity of 1,50
The present value of a perpetuity of 1,000 paid at the end of each year plus the present value of a perpe- tuity of 1,500 paid at the end of every 4 years is equal to the present value of an annuity of k paid at the end of each year for 25 years. Interest is 4% convertible quarterly. Calculate k.
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