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Using the formula for the present value of a growing perpetuity (where the first payment C is paid exactly one period from now (t=0) at
Using the formula for the present value of a growing perpetuity (where the first payment C is paid exactly one period from now (t=0) at t =1), derive the present value of a growing annuity that makes its first payment of C at t = 1, then grows at a rate g each period (e.g., the second payment at t = 2 is C(l + g), while the third payment at t = 3 is C(1+g)2, etc...), and makes a total of T payments (with the final payment at t= T). Let r denote the periodic effective interest rate
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