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A rich relative has bequeathed you growing perpetuity. The first payment will occur in a year and will be $3000, Each year after that, you
A rich relative has bequeathed you growing perpetuity. The first payment will occur in a year and will be $3000, Each year after that, you will receive 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 13% per year. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made? "
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