A perpetuity immediate pays $5000 every two months at a nominal interest rate of i^(4) = .06

Find its present value

so i first start by converting i^(4) to i^(6)/6 and I get

j = i^(6)/6 = .0099751652

Then the present value would be 5000*a(infinity,j)

where a(infinity,j) is a perpetuity immediate with interest rate j ?

But then I was thinking that this wouldnt work since it pays out every 2 months, so then would it look like this?

5000*(v^2+v^4+v^6+...)

If so, then I am not sure how you sum up (v^2+v^4+v^6+...)

any help is appreciated, thanks

Find its present value

so i first start by converting i^(4) to i^(6)/6 and I get

j = i^(6)/6 = .0099751652

Then the present value would be 5000*a(infinity,j)

where a(infinity,j) is a perpetuity immediate with interest rate j ?

But then I was thinking that this wouldnt work since it pays out every 2 months, so then would it look like this?

5000*(v^2+v^4+v^6+...)

If so, then I am not sure how you sum up (v^2+v^4+v^6+...)

any help is appreciated, thanks

## Comment