7) a. b. C. d. How much more is a perpetuity of $8,000 worth than an annuity of the same amount for 10 years? Assume an interest rate of 7% and cash flows at the end of each year. $99,212 $34,740 $58,097 $1,486.44

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1P
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7)
a.
b.
C.
d.
How much more is a perpetuity of $8,000 worth than an annuity of
the same amount for 10 years? Assume an interest rate of 7% and
cash flows at the end of each year.
$99,212
$34,740
$58,097
$1,486.44
Transcribed Image Text:7) a. b. C. d. How much more is a perpetuity of $8,000 worth than an annuity of the same amount for 10 years? Assume an interest rate of 7% and cash flows at the end of each year. $99,212 $34,740 $58,097 $1,486.44
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