You received a gift in the form of a perpetuity that will pay $5,000 per year starting
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You received a gift in the form of a perpetuity that will pay $5,000 per year starting in year 6 (t=6). What is the worth of this perpetuity at t=0 given that the interest rate is 5% compounded annually?
A philanthropist has decided to donate a growing annuity towards medical research, starting with $100,000 immediately (t=0). Every year, the amount will grow at 2%. The last donation will be at the end of year 8 (t=8). What is the present value of this donation, given that the interest rate is 5% compounded annually?
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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