Question: Consider an annuity which pays $5,000 initially, and then grows 3% per year to deliver a real return over inflation. Your Required Rate of

Consider an annuity which pays $5,000 initially, and then grows 3% per

Consider an annuity which pays $5,000 initially, and then grows 3% per year to deliver a real return over inflation. Your Required Rate of Return over the next 10 years is 7%. What is the present value of such a financial instrument?

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