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Property taxes in ICT Region are roughly 3% of the purchase price in this year and then it will grow at 2% every year forever.
Property taxes in ICT Region are roughly 3% of the purchase price in this year and then it will grow at 2% every year forever. If you just bought a Rs.1,000,000 home, what is the PV of all the future property tax payments? Assume that the house remains worth $1,000,000 forever, property tax rates growth rate will not change, and that a 12% interest rate is used for discounting.
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