A perpetuity paying 10,000 at the end of each year will be divided among two recipients, A and B. Recipient A will receive the first 10 payments and recipient B will receive the remaining payments. Calculate the ratio of the present value of A's share to the present value of B's share if the annual effective interest rate used is i = 7%. (3 decimal places) Answer: In calculating 07.35) using 5.2% annual effective interest, the exact partial payment made at time 7.35 to four decimals is

A perpetuity paying 10,000 at the end of each year will be divided among two recipients, A and B. Recipient A will receive the first 10 payments and recipient B will receive the remaining payments. Calculate the ratio of the present value of A's share to the present value of B's share if the annual effective interest rate used is i=7%. (3 decimal places) Answer: payment made at time 7.35 to four decimals is