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    Present Value of a Growing Perpetuity

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    I am evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.02% annually. If you use a discount rate of 0.07% for investment products, what is the present value of this growing perpetuity?

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    https://brainmass.com/economics/finance/present-value-growing-perpetuity-572246

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    Present value of this growing perpetuity:

    = Payment for the ...

    Solution Summary

    This solution explains the present value of a specific growing perpetuity.

    $2.19

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