The Present Value of a Growing Annuity is closest to, given the
following information
Amount "A" = $5000
Interest rate "i" = 3%
Growth rate "g" = 5%
Maturity "t" = 30 years
Select one:
a. $195,145.36
b. $185,145.76
c. $205,145.76
d. $215,145.76
| Present value of growth annuity = P/(r-g)*(1-((1+g)/(1+r))^n) | |||||
| =5000/(3%-5%)*(1-((1+5%)/(1+3%))^30) | |||||
| 195145.36 | |||||
| therefore correct answer is option = | 195145.36 | ||||
The Present Value of a Growing Annuity is closest to, given the following information Amount "A"...