Calculate the present value of the perpetuity

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Reference no: EM132039921

A perpetuity makes payments at the end of each year at an annual effective rate of 3.4%. The payment pattern is 3,2,1 (at the end of years 1, 2 and 3) and this pattern repeats for the balance of the perpetuity. Calculate the present value of the perpetuity at the beginning of the rst year. Please show all work.

Reference no: EM132039921

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