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Grace just won a national sweepstakes! For her prize, she opted to receive never-ending payments. The first payment will be $12,500 and will be paid
Grace just won a national sweepstakes! For her prize, she opted to receive never-ending payments. The first payment will be $12,500 and will be paid one year from today. Every year thereafter, the payments will increase by 3 percent annually. What is the present value of her prize at a discount rate of 7.25 percent?
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