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Homework answers / question archive / Charities A and B split a perpetuity with end of year payments of X
Charities A and B split a perpetuity with end of year payments of X. Charity A receives all of the odd numbered payments, and Charity B receives all of the even numbered payments. If the annual effective interest rate is i, the proportion of the present value held by Charity B is 0.480 769 2308.
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