Question
A rich aunt has promised you $ 2,000 one year from today. In addition, each year after that, she has promised you a payment (on
A rich aunt has promised you $ 2,000 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 20 years, giving a total of 20 payments. If the interest rate is 6 %, what is her promise worth today?
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Corporate Financial Management
Authors: Julian Ralph Franks, Harry H. Scholefield
2nd Edition
0566020548, 978-0566020544
