1. From memory, write down the growing perpetuity formula.
2. What is the PV of a perpetuity paying $5 each month, beginning this month (in 1 second), if the monthly interest rate is a constant 0.5%/ month (6.2%/year) and the cash flows will grow at a rate of 0.1%/month (1.2%/year)?
3. What is the PV of a perpetuity paying $8 each month, beginning this month (in 1 second), if the monthly interest rate is a constant 0.5%/ month (6.2%/year) and the cash flows will grow at a rate of 0.8%/month (10%/year)?