A rich relative has bequeathed you growing perpetuity

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Reference no: EM131844019

A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $ 3 comma 000$3,000. Each year after? that, you will receive a payment on the anniversary of the last payment that is nbsp 8 % 8% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 15 %15% 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?

Reference no: EM131844019

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