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Pam purchases a perpetuity-immediate that makes quarterly payments. The first payment is 20 and each payment increases thereafter by 2. Lucy purchases a 15-year annuity-immediate
Pam purchases a perpetuity-immediate that makes quarterly payments. The first payment is 20 and each payment increases thereafter by 2. Lucy purchases a 15-year annuity-immediate which makes annual payments. The first payment is 100, and each payment thereafter decreases by 5. Calculate the sum of the present value of the perpetuity and the annuity if the annual effective interest rate is 8%
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