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You just learnt that you are going to receive $300 a year forever. In addition, this amount will increase at the rate of 5% forever.

You just learnt that you are going to receive $300 a year forever. In addition, this amount will increase at the rate of 5% forever. However, these payments will not begin until four years from today. What is the present value of these payments assuming a discount rate of 6%?

a. $4,198.10 b. $23,762.81 c. $25,188.58 d. $30,000.00

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