A perpetuity-immediate has payments that increase by 1 per period for n periods, from 1 to n, and then remain at n forever. Which of the following are correct expressions for the present value of this perpetuity? I. äm II. - (Da),-n III. (Ia)m+ ªu" IV. (Ia),n+ u"-1

Advanced Engineering Mathematics
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ISBN:9780470458365
Author:Erwin Kreyszig
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Chapter2: Second-order Linear Odes
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A perpetuity-immediate has payments that increase by 1 per period forn
periods, from 1 to n, and then remain at n forever. Which of the following are correct
expressions for the present value of this perpetuity?
I än
1. я — (Da);—n
III. (Ia),+ u™
IV. (Ia),n+ va-1
(а) III only
(b) II and III only
(c) II, III and IV only
(а) 1, II, II and IV
(e) The correct answer is not given by (a), (b), (c), or (d).
Transcribed Image Text:A perpetuity-immediate has payments that increase by 1 per period forn periods, from 1 to n, and then remain at n forever. Which of the following are correct expressions for the present value of this perpetuity? I än 1. я — (Da);—n III. (Ia),+ u™ IV. (Ia),n+ va-1 (а) III only (b) II and III only (c) II, III and IV only (а) 1, II, II and IV (e) The correct answer is not given by (a), (b), (c), or (d).
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