Question: 4. Using infinite geometric series, show that 0.9 =1. Answer: 5. In Perpetuities Explained, you learned how to determine the value of a perpetuity. Decide

4. Using infinite geometric series, show that 0.9 =1. Answer: 5. In Perpetuities Explained, you learned how to determine the value of a perpetuity. Decide which of the following options is better and support your answer mathematically. Option A: Receive a one-time gift of $3200. Option B: Receive $250/yr in perpetuity. Assume that you can invest any money received at 7%/yr compounded annually.

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