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Rhonda wants to fund a growing perpetuity to her local library. The perpetual payments would be annual, starting with the first payment of $4,000 in
Rhonda wants to fund a growing perpetuity to her local library. The perpetual payments would be annual, starting with the first payment of $4,000 in one year. Rhonda wants the annual amount paid to the library grow by 4% per year. Given that the interest rate is 9%, how much does she need to fund this perpetuity?
A. $80,000
B. $96,000
C. $64,000
D. $40,000
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