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You Just Paid $525,000 for a Security That Will Pay

Question 60

Multiple Choice

You just paid $525,000 for a security that will pay you and your heirs $25,000 a year forever.What rate of return will you earn?

A) 4.95 percent
B) 4.39 percent
C) 4.76 percent
D) 5.00 percent
E) 4.50 percent

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