Question
A product promises an initial payment of $20, 000 at the end of this year and subsequent payments that will thereafter grow at a rate
A product promises an initial payment of $20, 000 at the end of this year and subsequent payments that will thereafter grow at a rate of 3.4 percent annually. If a 9% discount rate for investment product is used, what is the present value of this growing perpetuity.
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
