A rich aunt has promised you $5000 one year from today. In addition, each year after that,
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A rich aunt has promised you $5000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 2% larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 8%, what is her promise worth today?
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This scenario involves an ordinary annuity with increasing pa...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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