Perpetual stream of annual payments

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Given an interest rate of 10% per year, what is the value at the end of 5 years of a perpetual stream of 120$ annual payments starting at the end of year 9?

I dont understand the time fator in this question - i.e how do you encorporate year 9 and year 5 into the appropriate formula

 

Reference no: EM1364279

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