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Consider a growing annuity of five annual payments. The first payment of $25,194.24 is in three years; each subsequent payment is 8% greater than the
Consider a growing annuity of five annual payments. The first payment of $25,194.24 is in three years; each subsequent payment is 8% greater than the previous payment; and the effective annual discount rate is 8%. The present value today (to the nearest cent) of this growing annuity is not determinable since the growth rate equals the discount rate.
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