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Find the size of the perpetuity payments

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Reference no: EM132661682

Liberty mutual is selling a perpetuity that makes equal annual payments each year with the first payment at the end of year 5. They will allow you to pay for the annuity in 3 installments: $10,000 at the end of year 1, $8,000 at the end of year 2 and $16,000 at the end of year 7. Find the size of the perpetuity payments if the interest rate is currently 8.1%.

Reference no: EM132661682

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