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Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provides $1,000
Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provides $1,000 in the first year, and will grow by 7% per year, forever. If the interest rate is 9%, how much must Martin provide to fund his bequest?
a. $50,000
b. $25,000
c. $60,000
d. $40,000
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