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Consider a perpetuity-due with annual payments as follows: 200,200(1.09),200(1.09)2,,200(1.09)12 at times 0 , 1,2,,12 and level payments of 200(1.09)12 afterward at times 13,14,. Find the
Consider a perpetuity-due with annual payments as follows: 200,200(1.09),200(1.09)2,,200(1.09)12 at times 0 , 1,2,,12 and level payments of 200(1.09)12 afterward at times 13,14,. Find the PV of this perpetuity at time 0 given an annual effective rate of interest i=4%. Possible Answers 12,283 12,083 11,995 11,879 17,563
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