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Your recently departed rich, eccentric uncle has left for you in his will a large sum of money. Unfortunately, rather than giving you this sum
Your recently departed rich, eccentric uncle has left for you in his will a large sum of money. Unfortunately, rather than giving you this sum of money immediately, he has instructed the executor of the will to pay you $10,000 in one year. This payment is to grow by 9% each year and to be made each year forever. If the appropriate discount rate is 10%, how much have you actually inherited? a. $1,000,000 b. $100,000 c. $10,000,000 d. $9,090.90 e. $11,111.11
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