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# Annuities vs. Perpetuities Calculations

CORPFN-ATGKEK

How much more is a perpetuity of \$1,000 worth than an annuity of the same amount for 10 years? Assume a 10% annual interest rate and cash flows at the end of the period. A$1,486

B

$2,395 C$3,855

D

\$5,145