What is the Present Value of a Perpetuity with Increasing Payments?

[sstark]

Consider a perpetuity, which makes payments twice a year. The first year payments are
5 at time 0.5 (years) and 5 at time 1, next year they are 10 at time 1.5 and 10 at time 2, in
the third year the payments are 15.

 

[Ray Vickson]

Consider a perpetuity, which makes payments twice a year. The first year payments are
5 at time 0.5 (years) and 5 at time 1, next year they are 10 at time 1.5 and 10 at time 2, in
the third year the payments are 15.

Is there a question here somewhere?

RGV

 

[sstark]

Consider a perpetuity, which makes payments twice a year. The first year payments are
5 at time 0.5 (years) and 5 at time 1, next year they are 10 at time 1.5 and 10 at time 2, in
the third year the payments are 15 at time 2.5 and 15 at time 3, and so on. The annual
interest rate is 8% nominal convertible semiannually. Find the present value of this
perpetuity

 

[Ray Vickson]

Consider a perpetuity, which makes payments twice a year. The first year payments are
5 at time 0.5 (years) and 5 at time 1, next year they are 10 at time 1.5 and 10 at time 2, in
the third year the payments are 15 at time 2.5 and 15 at time 3, and so on. The annual
interest rate is 8% nominal convertible semiannually. Find the present value of this
perpetuity

OK. Now show us what you have done. Forum rules require you to show an attempt first before receiving any help.

RGV