Question

Example 5.35 : What is the purchase price of a perpetuity of 1500 per year at 10 %p.a ?
Solution : The purchase price of a perpetuity means the present value of the perpetuity P.
Here
X = 1500 and r:​

Answer 1

Pythagoras' theorem states that for all right-angled triangles, 'The square on the hypotenuse is equal to the sum of the squares on the other two sides'. The hypotenuse is the longest side and it's always opposite the right angle. In this triangle \ (a^2 = b^2 + c^2\) and angle \ (A\) is a right angle.