You just settled an insurance claim that calls for increasing payments over a 10-year period. The first payment will be paid one year from now in the amount of $5,000. The following payments will increase by 3.5 percent annually. What is the value of this settlement to you today if you can earn 6.5 percent on your investments?
a. $42,023.05.
b. $36,408.28.
c. $34,141.14.
d. $41,422.89.
e. $38,008.16.
f. $38,008.16.
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