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Given an interest rate of 12% per year compounded monthly, what is the value at the date t = 0 of a growing perpetual stream
Given an interest rate of 12% per year compounded monthly, what is the value at the date t = 0 of a growing perpetual stream of $200 monthly payments that begin at the date t = 1 (1st month) and grows at 0.05% per month till perpetuity? (nearest integer value)
Select one:
a. $20000
b. $2857
c. $21053
d. -$5000
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