A financial engineer designs a new financial instrument that he calls, the Stax. This instrument gives the holder access to the following cashflows:

• For the first 7 years, the holder receives $100 per year starting one year from today (a total of 7 payments)
• The holder does not receive any cashflows for years 8 or 9
• Starting at the end of year 10, the holder receives $75 growing at a rate of 9% per year forever
• The holder has to pay a service fee of $15 every year starting at the end of year 2; this goes on forever

The prevailing discount rate throughout is 10%

The financial engineer would like to determine a fair market price for this financial instrument, what do you suggest this price to be?

Please include formulas and calculations. Thanks.