The amount the investor will receive grows

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Allon Investments Corp has a new investment product (financial asset). If an investor invests $70,000 now, the investor will receive $3,000 in one year, and each year after that, the amount the investor will receive grows by 3%. The payments will continue forever. If you feel that the appropriate interest rate is 7%, is this a good investment? Why? Please show all the formulas and calculations

Reference no: EM131021907

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