Question
Please do not use financial calculator. I want to know the formula. Suppose that the annual percentage rate (compounded semi-annually) is 10%. Calculate the present
Please do not use financial calculator. I want to know the formula.
Suppose that the annual percentage rate (compounded semi-annually) is 10%. Calculate the present value of the following perpetuities:
(a) a perpetuity that pays $500 every year with the first payment occurring in 2 years from now;
(b) a perpetuity that pays $500 every year with the first payment occurring in 3 years from now;
(c) a perpetuity that pays $500 evey six months with the first payment occurring in 4 years from now;
(d) a perpetuity payable annually with the first payment of $100 now and each additional payment growing at 2% annually.
Thank you! (Please show me the process in detail, Thank you again!)
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