Question: 2. In class, we discussed the formulas for the present value of a perpetuity (aka: no-growth perpetuity) and the present value of an ordinary annuity

 2. In class, we discussed the formulas for the present value

2. In class, we discussed the formulas for the present value of a perpetuity (aka: no-growth perpetuity) and the present value of an ordinary annuity (aka: finite series of cash flows): Wiath and. We know that converges to as n approaches. Create a numerical example to show that this is so and explain the relevance of this convergence with respect to the estimation of financial asset valuation

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