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Consider a growing perpetuity that will pay $160 in one year. Each year after that, you will receive a payment on the anniversary of the
Consider a growing perpetuity that will pay $160 in one year. Each year after that, you will receive a payment on the anniversary of the last payment that is 4.0% larger than the last payment. This pattern of payments will continue forever. If the interest rate is 11.0% (EAR), then the value of this perpetuity is: (Note: 1 point. Round your answer to 2 decimal places without comma or $ signs; e.g. if your answer is $1,560.3589, just write 1560.36)
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