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Computing the capital value of the perpetuity

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Reference no: EM131798773

Question: Capital value Suppose that a donor wishes to provide a cash gift to a hospital that will generate a continuous income stream with an annual rate of flow at time t given by f(t) = $20,000 per year. If the annual interest rate is 12% compounded continuously, find the capital value of this perpetuity.

Reference no: EM131798773

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