Find the present value of the entire perpetuity

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A perpetuity-immediate has annual payments of $2, $5, $8, $11, ... The annual effective interest rate is such that the present value (at time zero) of the 9-th payment alone is equal to the present value (at time zero) of the 11-th payment alone. Find the present value (at time zero) of the entire perpetuity. (A) $318.06; (B) $283.02; (C) $401.52; (D) $774.91; (E) $268.94.

Reference no: EM131545410

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