Question: As a result of winning the Gates Energy Innovation Award
As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year and will be for $20,000. You will continue receiving monetary awards annually, with each award increasing by 5 percent over the previous award, and these monetary awards will continue forever. If the appropriate interest rate is 10 percent, what is the present value of this award?
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