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A rich relative has bequeathed you a growini perpetuity. The first payment will occur one year from now and will be $1,000. Each year afler
A rich relative has bequeathed you a growini perpetuity. The first payment will occur one year from now and will be $1,000. Each year afler that, you will recerve a paymetit cothe auniversary of the previous payment that is 8% larger than the previous jayment. This pantern of payments will go on forever. Assume that the interest rate is 12% per year Complete the stepr below asing cell referencer fo givin data or pinnions calculations. In some cases, a simple cell reference ir all your nerd. To copypaste a formila acrass a row or donn a dafa into a cell or function. Instead, mole a nefernesce to the cell in which che data is found, Arate your computations only in the blue cellis hightighted below. In all cancs, unless athenvite dinected, ise the earliest appearance of the data in your formuiat, iunatity the Givwn Datis section. a. What is today's value or the bequest? b. What is the value of the bequest immedisely after the first poyment is made? Amenal paymeat Growth rate Interest rate a. What is today's value of the bequest
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