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What is the price of growing perpetuity

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Reference no: EM131980709

1. What is the price of growing perpetuity that grows at a rate of 4% and starts paying $100, if your personal discount rate is 6%?

2. If the effective annual rate (EAR) is equal to 12%, what is the nominal rate (APR) compunded quarterly?

3. What is the present value of a growing annuity of 10 yearly payments, that start one year from now with a payment of $1000, and grow by 3% each year, if the going interest rate is 5%?

Reference no: EM131980709

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