Question: need help with part B If an annuity can make an unending number of equal payments at the end of the interest periods, it is

need help with part B If an annuity can make an

need help with part B

If an annuity can make an unending number of equal payments at the end of the interest periods, it is called a perpetuity. If a lump sum investment of A is needed to result in n periodic payments of R when the interest rate per period is /, then An = R 1 - (1+0- ]. (a) Evaluate lim A to find a formula for the lump sum payment for a perpetuity. Nice work! (b) Find the lump sum investment needed to make payments of $160 per month in perpetuity if interest is 12%, compounded monthly. (Round your answer to the nearest cent.) X Need Help? Read It

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