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Your friend promises you a perpetuity of $1.5 every year. If the first payment occurs in year 1 , the interest rate is 10% every
Your friend promises you a perpetuity of $1.5 every year. If the first payment occurs in year 1 , the interest rate is 10% every year, but the payment only in year 10 is $3 instead of $1.5 because of a mistake made by your friend, which of the following is right about its present value at time zero? a. $10.58 b. $15.42 c. $15.00 d. $15.58 e. None of the above
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