You are the recipient of a growing endowment that will last forever. The first payment you'll...
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You are the recipient of a growing endowment that will last forever. The first payment you'll receive will start one year from today (year 1) and will be of $800. Each year after that, you will receive a payment on the anniversary of the last payment that is 2% larger than the previous payment. This pattern of payments will go on forever. What is the value of this perpetuity 3 from now (year 3) given that the interest rate is 4% APR? You are the recipient of a growing endowment that will last forever. The first payment you'll receive will start one year from today (year 1) and will be of $800. Each year after that, you will receive a payment on the anniversary of the last payment that is 2% larger than the previous payment. This pattern of payments will go on forever. What is the value of this perpetuity 3 from now (year 3) given that the interest rate is 4% APR?
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Certainly Heres the calculation in an easytocopy format Given First payment year 1 80... View the full answer
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
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