Tobi owns a perpetuity that will pay $1,500 a year,starting one year from now.He offers to sell you all the payments remaining after the first 25 payments have been paid.What price should you offer him today for payments 26 onward if the discount rate is 8 percent? What does your offer price illustrate about the value of perpetuities?

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The Answer of Tobi owns a perpetuity that will pay $1,500 a year,starting one year from now.He offers to sell you all the payments remaining after the first 25 payments have been paid.What price should you offer him today for payments 26 onward if the discount rate is 8 percent? What does your offer price illustrate about the value of perpetuities?

Tobi Owns a Perpetuity That Will Pay $1,500 a Year,starting