A rich aunt has promised you $2,000 one year from today. addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 3% larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 4%, what is her promise worth today? C The present value of the aunt's promise is $. (Round to the nearest dollar.)
A rich aunt has promised you $2,000 one year from today. addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 3% larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 4%, what is her promise worth today? C The present value of the aunt's promise is $. (Round to the nearest dollar.)
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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