Question
A perpetuity pays 1 at the end of the first year, 4 at the end of the fourth year, 7 at the end of the
A perpetuity pays 1 at the end of the first year, 4 at the end of the fourth year, 7 at the end of the seventh year, and so on. The effective rate of interest is 8%. Determine the present value of this perpetuity.
A: 41
B: 48
C: 52
D: 56
E: 66
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Financial Management Principles And Applications
Authors: J William Petty, Sheridan Titman, Arthur J Keown, John D Martin, Peter Martin, Michael Burrow, Hoa Nguyen
6th Edition
1442539178, 9781442539174
