On second thought, Forever College will provide a scholarship of $7,500 a year forever, growing in value

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On second thought, Forever College will provide a scholarship of $7,500 a year forever, growing in value by 2 percent per year. The long-term annual expected interest rate is 6 percent. What is the current worth of this annuity?

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Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Question Posted: Sep 15, 2018 08:57 AM

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Forever College will provide a scholarship of $7,500 a year forever with a long-term annual expected interest rate of 6 percent. What is the current worth of this annuity?
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On second thought, Forever College will provide a scholarship of $7,500 a year forever, growing in value

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Foundations of Financial Management

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