Find the present value at time zero of the entire


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.

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Financial Management: Find the present value at time zero of the entire
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