SRL Archive - General

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?

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

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

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

5000/1.03 * 20= $97,087.37864

i think that is the answer :)

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 :) )