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What is the present value of a growing perpetuity that makes a payment of $100 in the first year, which thereafter grows at 3% per year? Apply a discount rate of 7%.

A. $ 2,000

B. $ 3,500

C. $ 2,500

D. $ 4,000

What formula do I use to solve this problem, and what is the correct answer.

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  • Reference No.:- M939846

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