Clarissa wants to fund a growing perpetuity that will pay $10,000 per year to a local museum, starting next year. She wants the annual amount paid to the museum to grow by 5% per year. Given that the interest rate is 9%, how much does she need to fund this perpetuity?
A) $125,000.00
B) $200,000.00
C) $300,000.00
D) $250,000.00
Correct Answer:
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