idekjenn1283 idekjenn1283
  • 14-02-2024
  • Mathematics
contestada

Consider a perpetuity due that pays 1 at the beginning of each year, forever. The effective annual rate of interest is i. Which of the following formulas doesn't give the present value (PV) of the perpetuity?
1) PV = 1 / i
2) PV = 1 / (1 + i)
3) PV = 1 / (1 - i)
4) PV = i

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