Problem:

You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $20,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 3.4 percent annually. If you use a 9 percent discount rate for investment products,

Requirement:

Question: What is the present value of this growing perpetuity?

Note: Please provide equation and explain comprehensively and give step by step solution.