What is the equivalent present worth of the series

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Reference no: EM13872394

A series of 5 constant dollar (or real dollar) payments (beginning with $5000 at the end of the first year) are increasing at the rate of 7% per year. Assume that the average general inflation rate is 5% and the market interest rate is 12% during this inflationary period. What is the equivalent present worth of the series?

Reference no: EM13872394

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