Assume we are at period 0 . The current interest is $r$. Define $x=frac{1}{1+r}$. (a) Derive the
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Assume we are at period 0 . The current interest is $r$. Define $x=\frac{1}{1+r}$.
(a) Derive the present value $S_{n}$ of the following cash flow in terms of $x$ and $n$ :
(b) Derive the present value $S$ of the following (infinite) cash flow in terms of $r$ and/or $x$ :
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