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You have the opportunity to join a group of investors who are buying one of the islands in Boston Harbor. Each investor must make a total of 20 payments. The first payment is $125,000 and must be paid today. After that, the remaining 19 payments are due at the end of each year and increase 3% per year, every year.

If the interest rate is 5% and you decide to invest in the island, using a timeline, what is the present value of the amount that you will pay?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92706555

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