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14 October, 21:44

A property will provide $10,000 at the end of each year forever. if its value is $125,000, what must be the discount rate?

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  1. 14 October, 23:36
    0
    This would be 10.00.
  2. 15 October, 00:09
    0
    The discount rate is

    10,000:125,000=0.08*100=8%
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