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A rich relative has bequeathed you a growing perpetuity . the first payment will occur in one year and will be $6888 each. Each year
A rich relative has bequeathed you a growing perpetuity . the first payment will occur in one year and will be $6888 each. Each year after that, you will receive a payment on the anniversary of the last payment that is 2.5% larger than the last payment. This pattern of payments will go on forever. If the interest rate is 7% per year, what is the present value of the bequest?
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