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A rich aunt has promised you $1,000 one year from today. In addition, each year after that, she has promised you a payment (on the
A rich aunt has promised you
$1,000
one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is
6%
larger than the last payment. She will continue to show this generosity for
10
years, giving a total of
10
payments. If the interest rate is
6%,
what is her promise worth today?
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