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Q23 An inheritance offers the amount of $100 in one year but then grows that amount by a constant rate of 3% forever. Which of
Q23
- An inheritance offers the amount of $100 in one year but then grows that amount by a constant rate of 3% forever. Which of the following comes closest to the present value of the inheritance if the bond's required rate of return is 10%?
a.$ 1,429
b.$ 3,333
c.$ 2,500
d.$ 1,667
e.$ 2,000
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