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Your great grandfather left you a trust will pay you an annual payment of $200 today but the annuity will grow at an annual rate
Your great grandfather left you a trust will pay you an annual payment of $200 today but the annuity will grow at an annual rate of 2% every year starting next year into perpetuity. Assume the interest rate is 6%, how much is this trust worth today?
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B) | $5,100.00 | |
C) | $5,300.00 | |
D) | $4,901.96 | |
E) | $3,400. |
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