At a constant interest rate of 15%, compounded annually, what is the present value of an income
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Question:
At a constant interest rate of 15%, compounded annually, what is the present value of an income
stream paying $50 next quarter and growing at 2% per quarter until the end of the third year?
From that point on it grows at 1% per quarter indefinitely?
i get the pv for the end of third year is -14 i don't think it is right and i don't know how do the indefinitely.
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