Question
You are the recipient of a gift that will pay you $25,000 one year from now and every year thereafter for the following 24 years.
You are the recipient of a gift that will pay you $25,000 one year from now and every year thereafter for the following 24 years. The payments will increase in value by 2.5 percent each year. If the appropriate discount rate is 8.5 percent, what is the present value of this gift?
HOW WOULD THIS BE PLUGGED INTO A FINANCIAL CALCULATOR (HP-12C)?
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Lending Investments And The Financial Crisis
Authors: Elena Beccalli, Federica Poli
1st Edition
1349564982, 978-1349564989
