On January 1, 1988, Felix inherited a perpetuity with annual payments beginning in 6 months. The first payment was $3,000, and after that the payments increased by 3% each year. Find the value of this perpetuity on January 1995 if the annual effective interest rate was 6% from Jan.1, 1988 through Jan.1, 1996 and 4% thereafter.

Please do not use excel