What sum of money, invested today in a perpetual fund earning 5 5 compounded semiannually, will sustain quarterly perpetuity payments of $1000 if the first payment is made a Three months from today b One year from today ...

a The payments form a general perpetuity having PMT 1000 i 552 275 c 24 05 and ...

What sum of money, invested today in a perpetual fund earning 5.5% compounded semiannually, will sustain quarterly

Question:

What sum of money, invested today in a perpetual fund earning 5.5% compounded semiannually, will sustain quarterly payments of $1000 if the first payment is made
a. Three months from today?
b. One year from today?
Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...