Find the value of this perpetuity on january 1 1995 if the


On January 1, 1988, Felix inherited a perpetuity with annual payments begin- ning in six months. The first payment was $3,000, and after that the payments increased by 3% each year. Find the value of this perpetuity on January 1, 1995 if the annual effective interest rate was 6% from January 1, 1988 through January 1, 1996 and 4% thereafter.

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Financial Management: Find the value of this perpetuity on january 1 1995 if the
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