Find the present value of a perpetuity that pays n (mod 3) dollars at the end...
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Find the present value of a perpetuity that pays n (mod 3) dollars at the end of year n. (So it pays $1 in year 1, $2 in year 2, $0 in year 3, $1 in year 4 and so on). Assume the annual effective interest rate is 10%. Find the present value of a perpetuity that pays n (mod 3) dollars at the end of year n. (So it pays $1 in year 1, $2 in year 2, $0 in year 3, $1 in year 4 and so on). Assume the annual effective interest rate is 10%.
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To find the present value of a perpetuity we can use the formula PV C r where ... View the full answer
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
Posted Date:
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