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As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year for
As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year for $25,000. You will continue receiving monetary awards annually with each award increasing by 4% over the previous award, and these monetary awarded will continue forever. If the interest rate is 10% what is the present value of the award?
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