Question
Given an effective annual rate of interest i=5%i=5%, find the present value of a perpetuity paying $1 every five years and increasing by $1 each
Given an effective annual rate of interest i=5%i=5%, find the present value of a perpetuity paying $1 every five years and increasing by $1 each payment. The first payments is five years from now.
Possible Answers
A: 17.15
B: 18.35
C: 16.72
D: 20.00
E: 84.00
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Modern Financial Markets Prices, Yields, And Risk Analysis
Authors: Mark Griffiths, Drew Winters, David W Blackwell
1st Edition
0470000104, 9780470000106
