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2 6 . A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $ 3
A rich relative has bequeathed you a growing perpetuity. The first payment will occur
in a year and will be $ Each year after that, you will receive a payment on the
anniversary of the last payment that is larger than the last payment. This pattern
of payments will go on forever. Assume that the interest rate is per year.
a What is todays value of the bequest?
b What is the value of the bequest immediately after the first payment is made?
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