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.