Perpetuity-immediate that makes quarterly payments

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Pam purchases a perpetuity-immediate that makes quarterly payments. the first payment is 20 and each payment thereafter increases by 2. Lucy purchases a 15-year annuity-immediate which makes annual payments. the first payment is 100, and each payment thereafter decreases by 5. calculate the sum of present value of the perpetuity and the annuity if the annual effective rate of interest is 8%

Reference no: EM13895798

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