A perpetuity pays 1 at the end of the first two years ie at, Ask an Expert

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A perpetuity pays 1 at the end of the first two years (i.e. at time t = 1 and t = 2), pays 2 at the end of the second two years (i.e. at time t = 3 and t = 4), 3 at the end of the third two years (i.e. at time t = 5 and t = 6), and so on. Assuming an annual effective interest rate of 8%,

find the present value of the perpetuity. Give your answer rounded to the nearest whole number.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92399970

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