Question
If an annuity makes an infinite series of equal payments at the end of the interest periods, it is called a perpetuity . If a
If an annuity makes an infinite series of equal payments at the end of the interest periods, it is called aperpetuity. If a lump sum investment ofAnis needed to result innperiodic payments ofRwhen the interest rate per period isi, then
An=[(R1(1 +i)n )/ i ]
(a) Evaluatelim(n)Anto find a formula for the lump sum payment for a perpetuity.
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Probability and Random Processes With Applications to Signal Processing and Communications
Authors: Scott Miller, Donald Childers
2nd edition
123869811, 978-0121726515, 121726517, 978-0130200716, 978-0123869814
