What is? today value of the? bequest

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A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $1,000. 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 forever. Assume that the interest rate is 16% per year.

a. What is? today's value of the? bequest?

b. What is the value of the bequest immediately after the first payment is? made?

Reference no: EM132818082

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