You just won the magazine sweepstakes and opted to take unending payments. The first payment will...

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You just won the magazine sweepstakes and opted to take unending payments. The first payment will...

You just won the magazine sweepstakes and opted to take unending payments. The first payment will be $50,000 and will be paid one year from today. Every year thereafter, the payments will increase by 2.5 percent annually. What is the present value of your prize at a discount rate of 7.9 percent?

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