(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 $30,000. You will continue receiving monetary awards annually with each award increasing by 7 percent over the previous award, and these monetary awards will continue forever. If the appropriate interest rate is 12 percent, what is the present value of this award? The present value of the award is $ nearest cent.) (Round to the

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
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(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 $30,000. You will continue receiving
monetary awards annually with each award
increasing by 7 percent over the previous award,
and these monetary awards will continue forever. If
the appropriate interest rate is 12 percent, what is
the present value of this award?
The present value of the award is $
nearest cent.)
(Round to the
Transcribed Image Text:(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 $30,000. You will continue receiving monetary awards annually with each award increasing by 7 percent over the previous award, and these monetary awards will continue forever. If the appropriate interest rate is 12 percent, what is the present value of this award? The present value of the award is $ nearest cent.) (Round to the
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