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19 August, 19:24

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. 19 August, 19:33
    0
    The discount rate is

    10,000:125,000=0.08*100=8%
  2. 19 August, 19:38
    0
    This would be 10.00.
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