(Present value of a growing perpetuity) As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year and will be for $25,000. You will continue receiving monetary awards annually with each award increasing by 6 percent over the previous award, and these monetary awards will continue forever. If the appropriate interest rate is 11 percent, what is the present value of this award? The present value of the award is $ www (Round to the nearest cent.)

(Present value of a growing perpetuity) As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year and will be for $25,000. You will continue receiving monetary awards annually with each award increasing by 6 percent over the previous award, and these monetary awards will continue forever. If the appropriate interest rate is 11 percent, what is the present value of this award? The present value of the award is $ www (Round to the nearest cent.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Find the present value of an annuity of $3000 per year at the end of each of 6 years after being deferred for 5 years, if money is worth 7% compounded annually. (Round your answer to the nearest cent.)
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