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Value of Perpetuity 1 answer below » 1) What is the value of a perpetuity that starts in one year, that pays $10 per year and has an interest rate of 10%? 2) What is the value of a perpetuity that pays $10 per year, starts today and has an interest rate of 10%? Hint: Do not discount the first
payment. 3 What is the value of a perpetuity that pays $10 per year, starts in two years and has an interest rate of 10%? Hint: Find the total value of
the perpetuity using the formula and then discount back the total value to year 0. Jan 10 2014 04:41 PM
