What is the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? a) $5,788 b) $4,750 c) $5,000 d) $5,250 e) $5,513
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A: A perpetuity is an annuity that gives payments but has no maturity period.
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A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…
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A: Computation of perpetuity at t=4:
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A: Answer:
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A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
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A: Perpetuity refers to series of equalized payments that are made either at start or end of definite…
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A: The present value of perpetuity is calculated as ratio of cash flows and the discount rate
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A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
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A: Formula: Periodic Deposit at the end of the Year,…
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A: Since you have asked multiple questions, we will solve the first question for you as per policy.…
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A: In finance, the time value of money concept states that the money available today is considered…
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A: In this question we require to compute the future value of investment from the details given.
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A: Present Value of Perpetuity = Perpetual Income / Interest Rate
Q: What is the present value of a perpetuity of P150,000 payable quarterly if money is 4%…
A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
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A: Given, Payment is $900 Interest rate is 11%.
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A: In this present value of perpetuity is given we have to find out the ANNUITY payment.
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A: Perpetuity refers to equalized stream of payments that are either paid or received for indefinite…
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A: Introduction: Annuity refers to the series of payments that are actually made at equal intervals.…
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A: Annual payment = $ 1000 Interest rate = 8%
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A: Value of perpetuity = 10,000 Annual Amount = 5,000
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A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 12% annually if…
A: A perpetuity is an annuity that gives out payments but has no maturity period.
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A: Answer- Perpetual Semi Annual Payments = 15,000 Interest Rate = 8% Compounded Quarterly Number of…
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A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
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A: Future of Annuity Due = Annuity * [ { ( 1 + Quarterly rate )Number of quarters - 1 } / Quarterly…
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- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%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 annuityWhat's the present value of a perpetuity that pays $260 per year if the appropriate interest rate is 4.9%? Group of answer choices $5,819 $6,094 $5,431 $5,056 $5,306
- What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate is 5%?13) Find the future value of an annuity if you invest $2100 annually for 6.5 years at 4% compounded annually. A) $682.50 B) $2782.50 C) $2709.80 D) $15,244.81How much will be the future value of a 5-year ordinary annuity which has annual payments of $200, evaluated at a 7.5% semi-annual interest rate? a. $3,828.34 b. $287.13 c. $1,161.68 d. $1,348.48
- if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present value of perpetuity? a. $15,000 b. $10,000 c. $8,000 d. $5,0003.) Find the present value of an annuity in perpetuity where payments are $1, 000 at the beginning of the first year, third year, etc. and payments are $1, 500 at the beginning of the second year, fourth year, etc. Here effective annual interest is 5%10) An annuity is set up that will pay $1500 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 9%? A) $5776 B) $9626 C) $11,551 D) $13,476
- • A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) at time 0, given that the interest rate is 11%? • A) $2695 • B) $4312 • C) $5390 • D) $3234 Please show your steps.What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year? Use a nominal rate of 8.00%. O $10,625 O $10,952 O $10,241 O $9,133 O $9,004A 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%?