Value of growing annuity


Problem:

You are looking to value an annuity that is held in your personal portfolio. The annuity's first cash flow is a payment of $10,000 and it is set to grow at a rate of 7% over the next 6 years.

Required:

Question: If the current discount rate is 9%, then what is the value of this growing annuity?

Note: Please show how you came up with the solution.

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Accounting Basics: Value of growing annuity
Reference No:- TGS0886742

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