Question

Please help with this mathematical question

Answer 1

C

Explanation:

`PV=((C)/(1+r) )/(1-(1+g)/(1+r) )`

Multiply top and bottom by 1+r.

`PV=(C)/(1+r-(1+g)) \\PV=(C)/(r-g)`

You can also solve this without algebra.

When r = 0, PV = -C/g. Of the 4 options, only C has the same result.