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QUESTION
The inflation rate is 2.0% per year. The real rate of return is 2.5% per year. A perpetuity that paid $100 this year will provide income that grows...
The inflation rate is 2.0% per year. The real rate of return is 2.5% per year. A perpetuity that paid $100 this year will provide income that grows by the inflation rate. What is the value of the perpetuity?
