Suppose today is January 1, and you are Johns Hopkins University's treasurer. Every year, JHU...
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Suppose today is January 1, and you are Johns Hopkins University's treasurer. Every year, JHU receives $274 million in tuition revenue on Feb 1, and $190 million on Aug 1, and $283 million on Sep 1. Given an interest rate of 6% (compounded monthly), what is the present value of this perpetual stream of tuition? (nearest $0.01) (There is no need to count days in this question. And don't forget the millions!)
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