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| rev | Admin | (Created page with "'''Solution: A''' The present value of the two payments is: <math display="block"> 1,000,000+\frac{1,000,000}{1.04^5}=1,821,927.07 </math> The present value of the perpetuity is: <math display="block"> \begin{aligned} & (1.04)\left[\frac{X}{0.04}+\frac{1000}{0.04^2}\right]=1,821,927.07 \\ & {\left[\frac{X}{0.04}+\frac{1000}{0.04^2}\right]=1,751,852.99} \\ & \frac{X}{0.04}=1,126,852.99 \\ & X=45,074.12 \end{aligned} </math> {{soacopyright | 2023 }}") | Nov 18'23 at 21:01 | +459 |