5. You have just struck oil in the middle of your hay field. An oil company has offered to pay you a perpetual annuity of $12,500 per year for the rights. The value of the offered annuity, assuming a 10% discount rate is calculated using the following formula: Vo = where Vo is the future value of the series of payments, A is the present value of the annuity, andi is the interest rate. Vo = 12,500/0.10 = $125,000 What would be the value of the annuity in question if the company increased the payment by 3% each year to for inflation? You will need to calculate the real interest rate by using the following formula: [(1 + i)/(1+1)] - 1 Where the real (growth) rate=1", nominal (growth) rate=), and where I inflation rate. After calculating the real interest rate, use the present value of the annuity formula listed above determine the new value of the annuity