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Question 1 (3 marks) A payment of $X is to be paid once per year in perpetuity, with the first payment made exactly 3.25 years
Question 1 (3 marks) A payment of $X is to be paid once per year in perpetuity, with the first payment made exactly 3.25 years from now. In order for the present value of this perpetuity to be equal to $783.25 at an interest rate of i() = 6.6%, what is the value of X? Give your answer to the nearest cent. Show all working [3 marks]
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