Question: A perpetuity due makes annual payments which begin at $100 for the first year, then increase at 6% per year through the 10th year, and

A perpetuity due makes annual payments which begin at $100 for the first year, then increase at 6% per year through the 10th year, and then remain level thereafter. Calculate the present value of this perpetuity, if the annual effective rate of interest is equal to 8%.

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