147k views
0 votes
(5) On January l, 1988, Felix inherited a perpetuity with annual payments beginning in six months. The first payment was $3,000, and after that the payments increased by 3% each year. Find the value of this perpetuity on January 1, 1995 if the annual effective interest rate was 6% from January I, 1988 through January I, 1996 and 4% thereafter.

1 Answer

0 votes

Answer:

Hence the value of this perpetuity on January 1, 1995 will be $55993.18404

Explanation:

(5) On January l, 1988, Felix inherited a perpetuity with annual payments beginning-example-1
User Maxisme
by
5.1k points