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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 five years from today. What is the present value of these payments assuming a discount rate of 6%?
Question 24 options:
| 22,417.75 |
| 23,762.81 |
| 25,188.58 |
| 30,000.00 |
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