A perpetuity is payable continuously at the annual rate of ?(?)^0.04t at time t, where e is the base of natural logarithms. If δ = .05, find the present value of the perpetuity.

Each payment of an annuity due is compounded for one compounded for one Select- -Select- v period, so the future value of an annuity due is equal to the future value of an ordinary annuity v period. The equation is: FVAdue=FVAordinary (1 + I) The present value of an ordinary annuity, PVAN, is the value today that would be equivalent to the annuity payments (PMT) received at fixed intervals over the annuity period. The equation is: 1- (1+1)N PVAN= PMT Each payment of an annuity due is discounted for one -Select- period, so the present value of an annuity due is equal to the present value of an ordinary annuity multiplied by (1 + I). The equation is: DVA זדת

The present value of an ordinary annuity, PAN, is the value today that would be equivalent to the annuity payments (PMT) received at fixed intervals over the annuity period. The equation is: Each payment of an annuity due is discounted for one less (1 + I). The equation is: PVAN= PMT 1- (1+1)N I period, so the present value of an annuity due is equal to the present value of an ordinary annuity multiplied by PVA due PVA ordinary (1+1) One can solve for payments (PMT), periods (N), and interest rates (I) for annuities. The easiest way to solve for these variables is with a financial calculator or a spreadsheet. Quantitative Problem 1: You plan to deposit $1,700 per year for 5 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. a. What amount will be in your account at the end of 5 years? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. Assume that your deposits will begin today. What…

To determine the converted table factor for the present value of an annuity due, one must find the factor for the present value of an ordinary annuity for n + 1 and then add 1. n − 1 and then subtract 1. n − 1 and then add 1. n + 1 and then subtract 1.