Kourtney and Khloe Kardashian are receiving slightly different incomes from investments that they had made in the past. Kourtney will receive a perpetuity of $29,000 per year forever, while Khloe will receive the same annual payment for the next 50 years. If the interest rate is 7.3 percent, how much more are Kourtney's payments worth now?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 13E
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Kourtney and Khloe Kardashian are receiving slightly different incomes from investments that they had made in the past. Kourtney will receive a perpetuity of $29,000 per year forever, while Khloe will receive the same annual payment for the next 50 years. If the interest rate is 7.3 percent, how much more are Kourtney's payments worth now?

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