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Management Studies

Your brother has offered to give you $100 starting next year as well as after that growing at 3% for next 20 years. You would like to compute the value of this offer by calculating how much money you would requirement to deposit in the local bank consequently that the account will generate the same cash flow as he is offering you. Your local bank will guarantee a 6% annual interest rate thus long as you have money in the account. a) How much money you want to deposit into the account today?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9391609

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