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Author Question: A perpetuity pays 550 at the end of every month. The PV of the perpetuity is 36,000. What is the ... (Read 201 times)

MirandaLo

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on: Jul 10, 2018
A perpetuity pays 550 at the end of every month. The PV of the perpetuity is 36,000. What is the effective interest rate (EIR) on the perpetuity?
 
  A) 19.95
  B) 18.33
  C) 9.17
  D) 13.42
  E) 15.15

Question 2

An annual percentage rate must be converted to the appropriate periodic rate when compounding is more frequent than once a year.
 
  Indicate whether the statement is true or false.


fromAlphatoOmega22

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Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

Answer: TRUE


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