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My friend has bequeathed you a growing perpetuity. The first payment will occur in a year and will be$ 2,ooo Each year after that, you

My friend has bequeathed you a growing perpetuity. The first payment will occur in a year and will be$ 2,ooo Each year after that, you will receive a payment on the anniversary of the last payment that is 6 % larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 14 % per year.

a. What is today's value of the bequest?

Answer: 25000

b. What is the value of the bequest immediately after the first payment is made?

NEED HELP ON B

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