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14 March, 07:36

The amount of money deposited 25 years ago at 5% interest that would now provide a perpetual payment of $15,000 per year is closest to

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  1. 14 March, 10:51
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    The amount of money needed now to begin the perpetual payments is

    P = A/I = 15,000:0.05=300,000

    The amount that would need to have been deposited 25 years ago is

    P=A: (1+r) ^t

    P=300,000: (1+0.05) ^ (25)

    P=88,590.83
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