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Thread: homework help calculation, finance please

  1. #1
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    Default homework help calculation, finance please

    A rich aunt has promised you $5000 one year from today. In addition, each year after
    that, she has promised you a payment (on the anniversary of the last payment) that
    is 3% larger than the last payment. She will continue to show this generosity for 20
    years, giving a total of 20 payments. If the interest rate is 5%, what is her promise
    worth today?

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    sorry i already figured out to do this proble, thanks anyways

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    i do not know how to delete this so im just going to leave it so..

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    What did you get, Im curious on how you did it
    http://puu.sh/1P22x

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    5000/1.03 * 20= $97,087.37864

    i think that is the answer

  6. #6
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    sorry that is wrong i wont ruin the method for you, but if you want the soloution there is a link in my original post(if you cant see it, quote or highlight the post )

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