How much money would you have to deposit today to create an income stream that pays $10,000 one year from today and continues to make annual payments forever,with payments after the first $10,000 growing at 4% per year? Assume money that you invest today to fund this income stream earns a 7% rate of return.
A)$142,857
B)$250,000
C)$1,250,000
D)$333,333

Question

Quizplus · Accepted Answer

The Answer of How much money would you have to deposit today to create an income stream that pays $10,000 one year from today and continues to make annual payments forever,with payments after the first $10,000 growing at 4% per year? Assume money that you invest today to fund this income stream earns a 7% rate of return.
A)$142,857
B)$250,000
C)$1,250,000
D)$333,333

How Much Money Would You Have to Deposit Today to Create