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By how much would you expect the value of eleanor

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Question - Four years ago, Eleanor purchased a perpetuity that agrees to pay her and her heirs $150 per month forever. At the time of purchase, Eleanor was expecting to earn an annual return of 6.00%, but in the intervening years, the economy and the available investment alternatives have changed. In today's market, it is now reasonable to anticipate an annual return of 3.60%.

Required - By how much would you expect the value of Eleanor's perpetuity to change from when she purchased it until today?

Reference no: EM133147850

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