Business, 14.07.2020 20:01 FailingstudentXD
A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $ 4 comma 000. Each year after that, you will receive a payment on the anniversary of the last payment that is nbsp 4 % larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 13 % per year. a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made?
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A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and...
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