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please show work and formulas used for calculations. thanks 36. Growing perpetuities and annuities As winner of a breakfast cereal competition, you can choose one
please show work and formulas used for calculations. thanks
36. Growing perpetuities and annuities As winner of a breakfast cereal competition, you can choose one of the following prizes: a. $100.000 now. b. $180,000 at the end of five years. c. $11,400 a year forever. d. $19.000 for each of 10 years. e. $6,500 next year and increasing thereafter by 5% a year forever. If the interest rate is 12%, which is the most valuable prizeStep by Step Solution
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