Present value of a growing perpetuity, Finance Basics

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Present value of a growing perpetuity

What is the present value of a growing perpetuity that makes a payment of $100 in the first year, which thereafter grows at 3% per year? Apply a discount rate of 7%.

A. $ 2,000

B. $ 3,500

C. $ 2,500

D. $ 4,000

What formula do I use to solve this problem, and what is the correct answer.

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Finance Basics: Present value of a growing perpetuity

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Finance Basics: Present value of a growing perpetuity

Reference No:- TGS039846

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Present value of a growing perpetuity

Reference No:- TGS039846

Recent Questions Asked Finance Basics

Q : How to measure value workers attach to such job amenity

Q : Describe impact differences have on excess quantity

Q : Company tolerance rate and industry standards

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