Currently your bank pays an interest rate of 7% on most long-term deposits. He has...
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Accounting
Currently your bank pays an interest rate of 7% on most long-term deposits. He has been named the beneficiary of a will. He needs your help in selecting one of the three options mentioned in the will.
He (and his estate) will receive $10,000 next year (a year from today) and that sum will grow at 3% per year for ever.
What is the value of this option?
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