You decided to fund a charity for ten years. The first payment will be made one year from today (at the end of year one) and will be $8,350. Each year after that, the charity will receive payment from you annually. The payment will increase at a rate of 2% per year after the second payment. If the annual interest rate is 15%, what is the present value of this endowment? no excel and calculations please
You decided to fund a charity for ten years. The first payment will be made one year from today (at the end of year one) and will be $8,350. Each year after that, the charity will receive payment from you annually. The payment will increase at a rate of 2% per year after the second payment. If the annual interest rate is 15%, what is the present value of this endowment? no excel and calculations please
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 39P
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Question
You decided to fund a charity for ten years. The first payment will be made one year from
today (at the end of year one) and will be $8,350. Each year after that, the charity will receive
payment from you annually. The payment will increase at a rate of 2% per year after the second
payment. If the annual interest rate is 15%, what is the present value of this endowment?
no excel and calculations please
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