How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter if the perpetuity earns 2.5% p.a. compunded quarterly, but the first payment is at the end of the 9th quarter? Give your answer rounded to the nearest dollar. $304,441
How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter if the perpetuity earns 2.5% p.a. compunded quarterly, but the first payment is at the end of the 9th quarter? Give your answer rounded to the nearest dollar. $304,441
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 12E
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How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter if the perpetuity earns 2.5% p.a. compunded quarterly, but the first payment is at the end of the 9th quarter? Give your answer rounded to the nearest dollar.
$304,441?
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