Question: Suppose the borrowing rate r B =10% compounded annually. However, the lending rate (or equivalently, the interest rate on deposits) is only 8% compounded annually.

Suppose the borrowing rate rB=10% compounded annually. However,

the lending rate (or equivalently, the interest rate on deposits) is

only 8% compounded annually. Compute the difference between the upper

and lower bounds on the price of an perpetuity that pays A=10,000$ per

year.

Please submit your answer rounded to the nearest dollar so if your answer is 23,456.789 then you should submit an answer of 23457.

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