Solve the problem.The current value of an annuity per period is given by P =
-
, where n is the number of periods, i is the interest rate, and R is the amount of the periodic payment. Find the limit of the current value equation as n approaches infinity to derive an expression for the current value for an annuity that makes payments in perpetuity.
A. P = ?
B. P =
C. P = 0
D. P = - R
Answer: B
Mathematics
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