Oxygen Optimization just bought a new filtration system for 166,400 dollars.To pay for the filtration system, the
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Oxygen Optimization just bought a new filtration system for 166,400 dollars.To pay for the filtration system, the company took out a loan that requires Oxygen Optimization to pay the bank a special payment of 122,000 dollars in 1 year(s) and also make regular annual payments forever.The first regular payment is expected in 1 year and is expected to be 2,100 dollars.All subsequent regular payments are expected to increase by a constant rate each year forever.The interest rate on the loan is 10.42 percent per year.What is the annual growth rate of the regular payments expected to be?Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
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