A perpetuity consists of monthly payments

Reference no: EM13332635

A perpetuity consists of monthly payments. The payment pattern follows a repeating 12-month cycle of eleven payments of 1 each followed by a payment of 2. The effective monthly interest rate is j. Show that the present value of the perpetuity valued one month before the first payments is 1/j(1+1/S[12]j).

Reference no: EM13332635

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