Question
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $21,000 at the end of
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $21,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.05 annually. If you use adiscount rate of 0.08 for investment products, what is the present value of this growing perpetuity?
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
