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1) A perpetuity-immediate makes payments starting 1 year from today. The first payment is $1000 and each subsequent payment increases by 5% a year. The
1) A perpetuity-immediate makes payments starting 1 year from today. The first payment is $1000 and each subsequent payment increases by 5% a year. The interest rate is 8% annual effective. e a. (3 points) What is the present value of this perpetuity ? ? ? ? ? ? ? ? ? ? b. (3 points) What is the value of the remaining payments of this perpetuity at t=10, right after the 10th payment is made. .? I ? ? ? ? ? ?
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