Ripetizioni di AnalisiMaths for EconomicsUnlockedITSearch

Exercise 14

Periodic deposits and perpetuity

Theory used: Sum of the terms of a geometric progressionGeometric series

At the end of every year, euros are deposited for years into an account at compound interest. Compute the balance immediately after the last deposit. Then compute the present value, at the rate of , of a perpetuity of euros a year with the first payment one year from now.

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