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Juan can buy the following rentals: Rent 1: is a past due rent decreasing over 10 years, with annual payments of 10,9,8,..,1 Income 2: it
Juan can buy the following rentals: Rent 1: is a past due rent decreasing over 10 years, with annual payments of 10,9,8,..,1 Income 2: it is a perpetuity due with annual payments. Perpetuity pays 1 in year 1, 2 in year 2, 3 in year 3,....,11 year 11. After year 11, the payments remain constant at 11. At an effective annual interest rate of i, the present value of Income 2 is twice that of Income 1 . Calculate the present value of Income 1
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