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Ken Purchases a Perpetual Investment That Pays $90 Per Year

Question 128

Multiple Choice

Ken purchases a perpetual investment that pays $90 per year indefinitely, beginning one year from today.What is price of the investment if the current discount rate is 7.6%?


A) $1,000
B) $4,126.45
C) $1,150.66
D) $1,184.21

Correct Answer:

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