Question
Shannon is evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of
Shannon is evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.02 annually. If you use adiscount rate of 0.09 for investment products, what is the present value of this growing perpetuity?
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Elementary Statisitcs
Authors: Barry Monk
2nd edition
1259345297, 978-0077836351, 77836359, 978-1259295911, 1259295915, 978-1259292484, 1259292487, 978-1259345296
