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Homework answers / question archive / Aunt Clara has promised to leave you $200 a year starting next year and have it increase at 6% a year thereafter

Aunt Clara has promised to leave you $200 a year starting next year and have it increase at 6% a year thereafter

Finance

Aunt Clara has promised to leave you $200 a year starting next year and have it increase at 6% a year thereafter. The payments are expected to go on indefinitely. How much has Aunt Clara left you if your opportunity cost is 10 percent?

$2,500

$3,000

$4,000

$5,000

$6,000

Option 1

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