RSM332H1 Lecture : Q1 Present Value of Growing Annuity (Easy)
Document Summary
You have just won a settlement in a large class action suit against a bank. The court rules that you have two options to receive your settlement. The first possibility is to receive a payment of. ,000 at the end of the year, and then, for the next 15 years this payment will be repeated, but it will grow at a rate of 5%. The interest rate is 12% during the entire period. The second possibility is to receive ,000 right now.
