The present value of a perpetuity paying 1 every two years with first payment due immediately is 7.21 at an annual effective rate of i. Another perpetuity paying R every three years with the first payment due at the beginning of year two has the same present value at an annual effective rate of i + 0.01. Calculate R.
(A) 1.23
(B) 1.56
(C) 1.60
(D) 1.74
(E) 1.94

Step-by-step explanation:

image attached (representing first perpetuity on number line)

Present value is 7.21

image attached (representing second perpetuity on number line)

we have ,

Here,

i

i = 0.077511297 + 0.01

Therefore, value of R is 1.74

i think it is 18

step-by-step explanation:

it would not be increasing by nothing that i can see probably by 25 percent that is all i can sat\y for now if i have any thing else to say i will edit this.

step-by-step explanation: