You get C0

= $5 today, and next month you will receive a payment of C1

= (1 + g) . C0

= 1.001 . $5 =

$5.005. The growing perpetuity is worth PV = C1/(r − g) = $5.005/(0.5% − 0.1%) = $1,251.25. The total value is $1,256.25.