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A 10-year investment will pay $1,800 at the end of this year, and the payments will grow at a rate of 5% per year. The
A 10-year investment will pay $1,800 at the end of this year, and the payments will grow at a rate of 5% per year. The required return is 12%. What is the present value of this investment?
Someone had posted an explanation with the solution of 25,714.29 however the answer is $12,228.16 and I cannot seem to work that. Obviously it is wrong but I could follow the steps easily with the $25,714.29 but it is incorrect so it is the wrong equation for the given question.
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