You are willing to pay 25000 now to purchase a perpetuity, Ask an Expert

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You are willing to pay $25,000 now to purchase a perpetuity which will pay you and your heirs $2,200 each year, forever, starting at the end of this year. If your required rate of return does not change, how much would you be willing to pay if this were a 15-year, annual payment, ordinary annuity instead of a perpetuity? show the answer in details

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92262135

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