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Mario receives payments from a perpetuity paying $1500 at the end of every 4-year period, with the first payment made at the end of year
Mario receives payments from a perpetuity paying $1500 at the end of every 4-year period, with the first payment made at the end of year 4. Luigi receives payments from a perpetuity paying $100 at the end of every 4-month period, with the first payment made at the end of month 4. The effective annual interest rate is the same for both perpetuities, and the present value of Mario's perpetuity is $3750. Find the present value of Luigi's perpetuity. (a) 3098 (b) 3517 (c) 3617 (d) 4147 (e) 4705
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