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You are willing to pay $20,000 to purchase a perpetuity that will pay you $100 each...

You are willing to pay $20,000 to purchase a perpetuity that will pay you $100 each month forever. What APR will you earn if you make this purchase?

a. 5.0%

b. 0.5%

c. 12.0%

d. 2.0%

e. 6.0%

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