Find what is the value of the growing perpetuity

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Reference no: EM132844228

problem 1: Your Aunt has promised to leave you an annuity that will pay $60 next year and grow at an annual rate of 4%. The payments are expected to go on indefinitely and the interest rate is 9%. What is the value of the growing perpetuity?

Option 1:
$1,248

Option 2:
$1,145

Option 3:
$693

Option 4:
$1,200

Option 5:
$667

Reference no: EM132844228

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