Author Question: The present value of an annuity that pays 100 each year indefinitely (i.e., a perpetuity) is 2,000 ... (Read 24 times)

cnetterville · **on:** Jun 30, 2018

The present value of an annuity that pays 100 each year indefinitely (i.e., a perpetuity) is 2,000 if the interest rate is 5 percent.
a. True
b. False

Question 2

A drop in dollar price of British pounds means that
a. fewer dollars are needed to buy British pounds
b. more dollars are needed to buy British pounds
c. the mark has appreciated
d. the dollar has depreciated
e. British goods are now more expensive to Americans