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What is the value of the bequest immediately after the

A rich relative has bequeathed you a payment of $1,000 one year from now. Each year after that, you will receive a payment on the anniversary of the last payment that is 8% larger than the previous payment. This pattern of payments will go on forever. If the interest rate is 12% per year:

a) What is today's value of the bequest?

b) What is the value of the bequest immediately after the first payment is made?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the value of the bequest immediately after the

Reference No:- TGS0595918

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the value of the bequest immediately after the

Reference No:- TGS0595918

Recent Questions Asked Finance Basics

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