Question a perpetuity has a payment of 100 at time t 1, Ask an Expert

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Question: A perpetuity has a payment of 100 at time t = 1. Each subsequent payment is 5 less than the previous payment until the payments reach an amount of 50, at which point the payments remain at 50 forever. Using an annual effective rate of interest i, find the present value of the perpetuity. Set up with annuities. You do not have to work out.

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