Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A perpetuity is a type of investment that pays forever. In the world of finance, perpetuity refers to an endless succession of identical financial flows.
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- Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 1.833 1.736 1.690 2.673 2.487 2.402 4 3.465 3.170 3.037 4.212 3.791 3.605 Using the tables provided, the present value of $13,265.00 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is O a. $47,820 Ob. $40,286 Oc. $31,863 Od. $13,265arrow_forwardFollowing is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables provided, the present value of $3,000 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is Group of answer choices $1,908 $7,206 $10,815 $9,111arrow_forwardPLEASE, WRITE THE SOLUTION ON PAPER, EXPLAINING THE ENTIRE PROCESS, STEP BY STEParrow_forward
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