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A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $1,000. Each year after that,
A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $1,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 6% larger than the last payment. This pattern of payments will go on forever. What is value (in $) of the bequest today if the interest rate is 10% per year?
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