Draw a cash flow diagram for a cash flow that starts at $1,000 at the end...

Draw a cash flow diagram for a cash flow that starts at $1,000 at the end of the first month and increases by $100 each month after that in perpetuity with an interest rate of 21% annual compounded monthly (Draw at least the first 5 months). What is the present value of this cash flow?

Expert Solution

Note:

I have used the formula for the sum of infinite gp series and the sum of infinite agp series in the solution.

Rahul Sunny answered 2 years ago

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