At an effective annual interest rate i, the present value of a perpetuity that pays 10...
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At an effective annual interest rate i, the present value of a perpetuity that pays 10 at the end of every 3 years, with the first payment at the end of year 3, is 32. At the same effective annual rate i, the present value of a perpetuity that pays 1 at the end of every 4 months, with the first payment at the end of 4 months, is X. Calculate X At an effective annual interest rate i, the present value of a perpetuity that pays 10 at the end of every 3 years, with the first payment at the end of year 3, is 32. At the same effective annual rate i, the present value of a perpetuity that pays 1 at the end of every 4 months, with the first payment at the end of 4 months, is X. Calculate X
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To calculate the present value of a perpetuity you can use the following formula Present Value PV Pa... View the full answer
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