Evaluate the present value of the perpetuity

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Reference no: EM132032320

Question: A perpetuity pays 1 at the end of the first two years (i.e. at times t = 1 and t = 2), pays 2 at the end of the second two years (i.e. at times t = 3 and t = 4), 3 at the end of the third two years (i.e. at times t = 5 and t = 6), and so on. Assuming an annual effective interest rate of 8%, find the present value of the perpetuity. Give your answer rounded to the nearest whole number.

Reference no: EM132032320

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