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a) According to the will made by my uncle before he died, I am expected to receive 40 in one year from today and every
a) According to the will made by my uncle before he died, I am expected to receive 40 in one year from today and every year in perpetuity. What is the value of the above amount of money if the interest rate is 1) 8% and 2) 10%. b) Then, I found out by reading better my uncle's will, that it provides that I will receive 40 in a year from today and this amount will increase annually at a rate of 6%. What is the present value of the above amount of money if the interest rate is 1) 8% and 2) 10%. Payments are overdue.
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