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6. You are the beneficiary of a trust set up by your grandparents. You will receive your first $2,000 cash ten years from now
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Answer #1

6. Value of these cashflows (at t=9) = 2000 0.05 -0.03 10 = 100000 ​​​​​​

Therefore, present value of this perpetuity = 100000 = = $64,460.89 ​​​​​​

All the given options are incorrect.

I can only answer 1 question at a time so I am solving question 6. Please do rate me and mention doubts in the comments section.

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