A perpetuity is received via annual payments. The first payment, which will occur in 6 years, will be for $1560, and the payments will increase by 4.6% each year after that. If the effective rate of interest is 7.3%, what is the present value of the perpetuity (6 years before the first payment)?

Answer rating: 100% (QA)

Annuity Amount in 6 years 1560 Growth rate 46 or 0046 Effective rate of int... View the full answer