A rich donor gives a hospital $1,040,000 one year from today. Each year after that, the hospital will receive a payment 6% larger than the previous payment, with the last payment occurring in ten years' time

What is the present value (PV) of this donation, given that the interest rate is 11%?
A) $3,840,628.87
B) $5,376,880.42
C) $6,913,131.97
D) $7,681,257.74

Answer: D

Business

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