Question
**** please hand-write/type out work, not using a spreadsheet **** There is a perpetuity due in which the payments increase by 5 percent per year,
**** please hand-write/type out work, not using a spreadsheet ****
There is a perpetuity due in which the payments increase by 5 percent per year, and the present value of the 6th payment is equal to the present value of the 8th payment. The first payment is 500 dollars. Find both the effective interest rate and the present value.
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
