Question
Suppose that you have inherited a perpetuity that will pay $2,865 one year from now, each of the following annual payments will be 2%
Suppose that you have inherited a perpetuity that will pay $2,865 one year from now, each of the following annual payments will be 2% larger than the prior payment. Assuming that the annual opportunity cost of capital is 9%, what is payment made at the end of year 16? Round your final answer to two decimals.
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Microeconomics An Intuitive Approach with Calculus
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