Revision as of 22:08, 26 November 2023 by Admin (Created page with "A perpetuity pays 1 at the end of every year plus an additional 1 at the end of every second year. The present value of the perpetuity is K for i > 0. Determine K. <ul class="mw-excansopts"><li><math display = "block">\frac{i+3}{i(i+2)}</math></li><li><math display = "block">\frac{i+2}{i(i+1)}</math></li><li><math display = "block">\frac{i+1}{i^2}</math></li><li><math display = "block">\frac{3}{2 i}</math></li><li><math display = "block">\frac{i+1}{i(i+2)}</math></li>...")
ABy Admin
Nov 26'23
Exercise
A perpetuity pays 1 at the end of every year plus an additional 1 at the end of every second year. The present value of the perpetuity is K for i > 0.
Determine K.
- [[math]]\frac{i+3}{i(i+2)}[[/math]]
- [[math]]\frac{i+2}{i(i+1)}[[/math]]
- [[math]]\frac{i+1}{i^2}[[/math]]
- [[math]]\frac{3}{2 i}[[/math]]
- [[math]]\frac{i+1}{i(i+2)}[[/math]]
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.