Author Question: A perpetuity pays 550 at the end of every month. The PV of the perpetuity is 36,000. What is the ... (Read 195 times)

MirandaLo

  • Hero Member
  • *****
  • Posts: 538
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

  • Sr. Member
  • ****
  • Posts: 345
Answer to Question 1

A

Answer to Question 2

Answer: TRUE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

For a complete list of videos, visit our video library