Question: Consider a growing perpetuity that will pay $100 in one year. Each year after that, you will receive a payment on the anniversary of the

Consider a growing perpetuity that will pay $100 in one year. Each year after that, you will

receive a payment on the anniversary of the last payment that is 6% larger than the last

payment. This pattern of payments will continue forever. If the interest rate is 11%, then

the value of this perpetuity is:

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