A rich aunt has promised you $5,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 6% larger than the last payment. She will continue to show this generosity for 10 years, giving a total of 10 payments. If the interest rate is 6%, what is her promise worth today? Your rich aunt's promise is worth $ 943339.62 today. (Round to the nearest cent.)

A rich aunt has promised you $5,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 6% larger than the last payment. She will continue to show this generosity for 10 years, giving a total of 10 payments. If the interest rate is 6%, what is her promise worth today? Your rich aunt's promise is worth $ 943339.62 today. (Round to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 6P

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