Find the purchase price of this perpetuity

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Reference no: EM131461143

A perpetuity immediate pays out 400 semiannually for the first year. From then on the payments increase by 10 every year. Given the effective interest rate is 9% annually, find the purchase price of this perpetuity.

a) 11,608

b) 11,568

c) 11,763

d) 11,785

e) 11,432

Reference no: EM131461143

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