Your recently departed rich, eccentric uncle has left for you in his will a large sum of money. Unfortunately, rather than giving you this sum of money immediately, he has instructed the executor
Of the will to pay you $10,000 in one year. This payment is to grow by 9% each year and to be made
Each year forever. If the appropriate discount rate is 10%, how much have you actually inherited?
A) $100,000
B) $1,000,000
C) $11,111.11
D) $9,090.90
E) $10,000,000
Correct Answer:
Verified
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