There is a perpetuity due in which the payments increase by 5 percent per year, and the present value of the 6’th payment is equal to the present value of the 8’th payment. The first payment is 500 dollars. Find both the effective interest rate and the present value.

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A: Future Value: It refers to the amount or future worth of an asset at a particular date in the…

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A: Macaulay Duration is a weighted average of the maturities of all the income streams of a bond or a…

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A: Following is the answer to the question

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