Question
A series of twenty-one constant-dollar payments beginning with $5,000 at the end of the first year are growing at a rate of 4% per year.
A series of twenty-one constant-dollar payments beginning with $5,000 at the end of the first year are growing at a rate of 4% per year. If the inflation-free rate is 3% per year and the inflation rate is 6% per year, find the present equivalent of this series of payments using constant-dollar analysis. The base year is year 0.
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
11th Edition
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