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What the price of a perpetuity is

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Reference no: EM132576983

Question 1: The price of a 'perpetuity' where the annual amount of $21,000 is paid out forever, given the interest rate of 12% is:

Select one:

a. $23,520

b. Unable to determine as the term is infinite

c. $200,000

d. $175,000

Reference no: EM132576983

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