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A benefactor will deposit a sum of money into an accouont at the end of each of the next 9years. the first deposit will be $2000 and the annual deposits will grow by 2% every year. The account pays interest r=5% per year, compounded annually.

What is the present value of this stream?

Now, I know how to do this problem if the deposit didnt grow by 2% per year, and for some reason Im not seeing a formula applying that concept.

The answer is $15,308.84, but I dont know how to show it (aside from the very round about way of solving for each year)

Help is dearly appreciated! Thanks in advance <3

Posted by money, filed under make money. Date: April 13, 2009, 6:18 am | 2 Comments »


Posted by money, filed under make money. Date: April 13, 2009, 6:18 am | 1 Comment »

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