A growing annuity will pay the first cash flow of $$1000$ in $1$ second. Each subsequent

cash flow will be in one$-$year intervals and grow at a rate of $5\%$ each year. There are

$31$ payments in this growing annuity. The discount rate to use is $9\%($EAR$).$ Let PVGA

be the result from using the standard PV of growing annulty formula that includes

$g=\mathrm{.}05$ and $r=\mathrm{.}09.$ Which of the following will give the correct PV now of all the cash

flows of this growing annuity?

A$)$ Use $$1000$ as the first cash flow in the PVGA, use $30$ as the number of cash

flows, then add $$1000$ to the result.

B$)$ Use $$1090$ as the first cash flow in the PVGA and use $30$ as the number of

cash flows.

C$)$ Use $$1050$ as the first cash flow in the PVGA and use $30$ as the number of

cash flows.

D$)$ Use $$1000$ as the first cash flow in the PVGA, use $31$ as the number of cash

flows, then multiply the result by $1\mathrm{.}05.$

E$)$ Use $$1000$ as the first cash flow in the PVGA, use $31$ as the number of cash

flows, then multiply the result by $1\mathrm{.}09.$