Sum of infinite series
If you noticed, without the summation notation, it is the present value money formula with finite time period.
PV - present value
FV - future value
i - interest rate
n - number of years
PV = FV/(1+i)^n
The present value money formula with indefinite time period is
PV = D / i
D - dividend (which is FV every year)
I'm curious if the infinite summation of FV/(1+i)^n (see the picture attached) is D / i.
Step by step process and explanation appreciated.
Answer
Answers can only be viewed under the following conditions:
- The questioner was satisfied with and accepted the answer, or
- The answer was evaluated as being 100% correct by the judge.

4.8K
-
Please leave a comment if you need any clarifications.
The answer is accepted.
Join Matchmaticians Affiliate Marketing
Program to earn up to a 50% commission on every question that your affiliated users ask or answer.
- answered
- 1349 views
- $4.00
Related Questions
- Calculate the imit of $\sum_{k=0}^{∞} (-1)^k\frac{1}{k!} $
- Calculus: INFINITE SERIES
- Arithmetic Sequences Help
- Determine the Closed Form of a Recurrance Relation
- Prove that the following sequences monotnically decrease and increase correspondingly. Since they are bounded, find the limit.
- Sequence & Series
- using maclaurin series for tan(x) and equation for length of cable to prove that x=
- Find sum of $n$ term, sum to infinity, least value for $n$
Your question is vague. Do you want to compute the sum in the attached picture? What is x?