Question: ( a ) A perpetuity immediate pays 1 0 , 0 0 0 per month. The interest rate earned by the perpetuity is 8 %

(a) A perpetuity immediate pays 10,000 per month. The interest rate earned by the perpetuity is 8% compounded monthly. Calculate the present value of this perpetuity.
(b) Doris is the beneficiary of a trust fund. Doris and her descendants will receive a payment of 1000 at the beginning of each month forever. Using an annual effective interest rate of 4%, determine the current value of these payments.
( a ) A perpetuity immediate pays 1 0 , 0 0 0 per

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