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In her will, your aunt set up a trust that is required to pay you the sum of $5,000 a year forever with payments starting
In her will, your aunt set up a trust that is required to pay you the sum of $5,000 a year forever with payments starting immediately so you will receive $5,000 today. However, the news is better. She has specified that this $5,000 should grow at 3% per year. Given an interest rate of 10%, what is the PV of the inheritance?
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