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Years Purchase In perpetuity
no income tax
(quarterly in advance)
1
4[1 - (1+r)
-1/4
Amount (£)
Interest Rate (%)
(n)
Answer (£)
(1+r)
Effective yield [r]
(1+i/p)^p -1
(1+r)
-1/4
p = no of times int
1 - (1+r)
-1/4
is received and
4[1 - (1+r)
-1/4
compounded
1
during the year
4[1 - (1+r)
-1/4
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