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A financial advisor is trying to sell you an increasing perpetuity. One year from today you will receive $5,000, and the payments will increase at $5,000 per year. Thus, in 2 years you will receive $10,000, in 3 years you will receive $15,000, and so on. If the interest rate is a 3.9 percent APR compounded quarterly, how much should you pay for this perpetuity today?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92800341

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