Determine the difference between the present value of a $1,000 twenty-year annuity earning 8% interest compounded annually versus a $1,000 twenty-year growing annuity earning 8% interest compounded annually and having a 2% annuity growth rate.
A) $1,535.06
B) $1,935.06
C) $2,535.06
D) $2,935.06
E) $3,535.06
Correct Answer:
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