Kimiko owns an increasing perpetuity due: the amount of the payments goes 1,2,3,4.... Her payments are annual but the payments dont start until time t = n. Prove that the present value of her perpetuity is given by v n/(id), where i is the effective annual interest rate, v is the corresponding discount factor, and d is the corresponding annual discount rate. (This one had a typo on Tuesdays exam: payments should start at t = n+1 not t = n, and I should specify that i > 0.) Hint: Start with the formula for (Ia)i .