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A rich relative has bequeathed ou a grow ng perpetuity. The first payment wl occur in a year and wil be $4,000 ach yea after
A rich relative has bequeathed ou a grow ng perpetuity. The first payment wl occur in a year and wil be $4,000 ach yea after hat, you will rece ve a payment on the anniversary of the last payment that is 3% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 9% per year. a. What is today's value of the bequest? b. What is the value of the bequest immadiately after the first payment is made? a. What is today's value of the bequest? Today's value of the bequest is $66667.(Round to the nearest dollar.) b. What is the value of the bequest immadiately after the first payment is made? The value of the bequest immediately after the first payment is made is sRound to the nearest dollar)
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