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What is the present value of the bequest

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A rich relative has bequeathed you a growing perpetuity. forever. The first payment will occur in one year and will be $1686 each. Each year after that, you will receive a payment on the anniversary of the last payment that is 5% larger than the last payment. This pattern of payments will go on If the interest rate is 10% per year, what is the present value of the bequest?

Reference no: EM133068896

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