On January 1, 1988, Wanda received a deferred perpetuity paying $3000 on July 1 of even numbered years beginning on July 1, 1996, and $1200 on July 1 of odd years beginning on July 1, 1997. The interest rate is 4% effective for even numbered years and 5% effective for odd numbered years. Find the value of this perpetuity on January 1, 1988.

The answer is $33,954.85, I just need help finding the steps to solve this. Thanks!

Answer rating: 100% (QA)

year In order to accomplish this I find the two interest rate j 1 ... View the full answer