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Jack inherited a perpetuity-due with annual payments of 15,000. He immediately exchange the perpetuity for a 25-year annuity-due having the same present value. The annuity-due has annual payments of X. All present values are based on an annual effective interest rate of 10% for the first 10 years and 8% thereafter. Calculate X. Show all work and any calculation functions used.

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Financial Management, Finance

Category:- Financial Management
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