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The FIRE311 financial security offers an investor with the payment of $100 at the end of year 1 (t=1), the payment of $0 at the
The FIRE311 financial security offers an investor with the payment of $100 at the end of year 1 (t=1), the payment of $0 at the end of year 2 (t=2), the payment of $200 at the end of year 3 (t=3),and the payment of $250 at the end of year 4 (t=4). After that, the payments will grow at a constant rate of 4.50% per year, forever. If the investor's cost of capital (required rate of return) is 15.30% per annum, then what is the maximum price they are willing to pay for the FIRE311 financial security now (at time t=0)?
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