7. (Present value of a growing perpetuity)As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year and will be for $10,000.

You will continue receiving monetary awards annually with each award increasing by 4 percent over the previous award, and these monetary awards will continue forever. If the appropriate interest rate is 11

percent, what is the present value of this award?

Part 1

The present value of the award is ______$. (Round to the nearest cent.)