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| rev | Admin | (Created page with "'''Solution: B''' Split this into three perpetuities with payments 3 years apart. Find the three-year interest rate: <math>1.125=(1+j)^{\frac{1}{3}}, j=0.423828</math>. The present value of the three perpetuities, starting at times 0,1 , and 2 is: <math display="block"> \begin{aligned} & \frac{100(1.423828)}{0.423828}+\frac{X(1.423828)}{0.423828(1.125)}+\frac{100(1.423828)}{0.423828(1.125)^2}=9450 \\ & X=2963.19 \end{aligned} </math> {{soacopyright | 2023 }}") | Nov 18'23 at 20:26 | +467 |