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Your Aunt,in Her Will,left You the Sum of $5,000 a Year

Question 122

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Your aunt,in her will,left you the sum of $5,000 a year forever with payments starting immediately. However,the news is better. She has specified that the amount should grow at 5% per year to maintain purchasing power. Given an interest rate of 12%,what is the PV of the inheritance?

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$5,000 + $...

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