What is the present value of this award

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Reference no: EM132072538

As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity.

The first payment will occur in a year and will be for $20,000. You will continue receiving monetary awards annually with each award increasing by 5% over the previous award, and these monetary awards will continue forever.

If the appropriate interest rate is 10%, what is the present value of this award?

What is the future value of each of the following streams of payments a. $500 a year for 10 years compounded annually at 5 percent?

What is the present value of the following annuities? $2,500 a year for 10 years discounted back to the present at 7 percent?

Reference no: EM132072538

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