Answer to Question #191391 in Economics for gel

Question

Juan De La Cruz is giving an endowment to a religious congregation in order to provide payments of $5,000, $4,000, $3,000 and $2,000 respectively, at the end of the first, second, third and fourth quarters during a year. If the interest rate is 10% compounded quarterly, what is the capitalized equivalent that must be deposited now so that the quarterly payments can be repeated forever?

Answer 1

$$\frac{5000}{1+\frac{0.1}{12}}=600000$$