What is the present value of a growing perpetuity

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Reference no: EM13976120

What is the present value of a growing perpetuity that makes a payment of $100 in the first year, which thereafter grows at 3% per year? Apply a discount rate of 7%.

$ 2,000

$ 3,500

$ 2,500

$ 4,000

Reference no: EM13976120

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