Magazine sweepstakes and opted to take unending payments

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Reference no: EM13877939

You just won the magazine sweepstakes and opted to take unending payments. The first payment will be $35,000 and will be paid one year from today. Every year thereafter, the payments will increase by 2% annually. What is the present value of your prize at a discount rate of 6%?

775,000

350,000

875,000

455,000

556,000

Reference no: EM13877939

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