Problem VI: Annual effective interest rate is 10%. You are thinking about the present value of two different perpetuities. The first has payments which start at $100 per year and increase by 10% cach...

Extracted text: Problem VI: Annual effective interest rate is 10%. You are thinking about the present value of two different perpetuities. The first has payments which start at $100 per year and increase by 10% cach year.forever. The second has payments which start at $1000 and increase by $1000 each year forever. Discuss the challenges and approaches you would use to try to find the present values. Bonus: For extra credit, find the present values.