Information about financial math

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Your required a rate of return is 4%. What is the value of a contract that pays the buyer $100 a year forever (the first payment is made exactly one year after purchase) plus an additional $1000 a year for the first 10 years (but, the first payment is made immediately - in other words, the $100 payments are made at the end of each year and the $1000 payments are made at the start of each year)?

Reference no: EM13116092

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