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What is the value at date of a growing perpetual stream

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Reference no: EM132973078

Problem 1: Given an interest rate of 12% per year compounded monthly, what is the value at date t = 0 of a growing perpetual stream of $200 monthly payments that begin at date t = 1 (1st month) and grows at 0.05% per month till perpetuity? (nearest integer value

Select one:

a. $21053
b. $20000
c. -$5000
d. $2857

Reference no: EM132973078

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