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Please show all work and label inputs, thanks! A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year
Please show all work and label inputs, thanks!
A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $2,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 8% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 12% per year. a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is madeStep by Step Solution
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