3. This problem asks you to confirm that a growing annuity has a well-defined and positive PV even when the growth rate of cash flows exceeds the discount rate (g > r). Returning to the Danish government security example, assume the Danish government decides to offer a security that will pay growing cash flows for a total of 30 years. The security will pay 200 Kroner in one year, and then amounts that grow at 6% per year thereafter, until the final payment 30 years from now. What is the value of this security if the discount rate equals 4%? Hint: Dont be perturbed if one term in your computation is negative, because the second term will also be negative, and the product therefore positive!