A perpetuity with a present value of $80,000 today yields cash flows of $2,500 per quarter. The first cash flow comes in one quarter from today. What is the required return for the perpetuity in APR?
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A perpetuity with a present value of $80,000 today yields cash flows of $2,500 per quarter. The first cash flow comes in one quarter from today. What is the required return for the perpetuity in APR?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityThe present value of a perpetuity with annual cash flows of $1,000 each year is $15,000. What is the annual interest rate? Round your answer to two decimals.A perpetuity with a present value of $25,000 today yields cash flows of $100 per month. The first cash flow comes in one month from today. What is the required return for the perpetuity in APR?
- What is the present value of a perpetuity with payments starting one year from now. The first payment is $15,000. Assume a discount rate of 12%.A perpetuity will make a sequence of annual payments of 2800, 3000, 3200, ..., with the first payment coming a year from now. If the present value is 107728.89 dollars, what is the effective rate of interest?An annual perpetuity of $10,000 has a present value of $250,000. What is the annual interest rate?
- A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?What is the present value of a perpetuity paying $1500 each year, if the effective annual interest rate is a constant 12.68% per year?The present value of an annuity is payable annually for 2 years, with the first payment at the end of 10 years is 42,114. If money is worth 3.6%. what is the value of annuity?
- A perpetuity will pay $800 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 3%?What is the present value of an ordinary annuity of $400 each month for eight years, assuming an opportunity cost of 0.05?What is the difference in present value between a perpetuity that pays $500 per year and an ordinary annuity that pays $500 per year for 23 years? Assume a discount rate of 7% and cash flows at the end of the period. Enter your answer as a number rounded to 2 decimal places.