Perpetuity 1 has cash flows at periods 1 through infinity


Perpetuity 1 has cash flows at periods 1 through infinity and a value at period 0 of 7021.43 using an interest rate of 14%. Perpetuity 2 has the same cash flows, but starts at a later date. Its value at period 0, using the same 14% interest rate, is $204.17. Determine the future value, as of the last payment, of an annuity created by subtracting perpetuity 2 from perpetuity 1. 

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Finance Basics: Perpetuity 1 has cash flows at periods 1 through infinity
Reference No:- TGS01064127

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