Question
A rich aunt has promised you $5000 one year from today. In addition, each year after that, she has promised you a payment (on the
A rich aunt has promised you $5000 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 5% 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 5%, what is her promise worth today?
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Fundamentals Of Financial Management
Authors: Richard Bulliet, Eugene F Brigham, Brigham/ Houston
11th Edition
1111795207, 9781111795207
