« previous next »

Author Question: What is the present value of the following perpetuities? a. 200 per year discounted at 6 annually ... (Read 69 times)

humphriesbr@me.com

  • Hero Member
  • *****
  • Posts: 550
on: Jul 11, 2018
What is the present value of the following perpetuities?
  a. 200 per year discounted at 6 annually
  b. 500 per year discounted at 9 annually
  c. 1,000 per year discounted at 5 annually
  d. 550 per year discounted at 8 annually
 
  What will be an ideal response?

Question 2

An investment will pay 500 in three years, 700 in five years and 1000 in nine years. If your opportunity rate
  is 6, what is the present value of this investment?
 
  What will be an ideal response?
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


af

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jul 11, 2018
Answer to Question 1

a. 3,333.33
b. 5,555.56
c. 20,000.00
d. 6,875.00

Answer to Question 2

1,534.79


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
The Black Death spread over much of Europe in a three-year period in the middle of the fourteenth ce The Black Death spread over much of Europe in a three-year period in the middle of the fourteenth ce
High rates of rural poverty have been a part of the United States from its origin to the present. ... High rates of rural poverty have been a part of the United States from its origin to the present. ...
Foods for Baby’s First Year Foods for Baby’s First Year
One year ago, Christos bought 1000 units of the Dominion Aggressive Growth Fund at $20.35 per ... One year ago, Christos bought 1000 units of the Dominion Aggressive Growth Fund at $20.35 per ...
Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ... Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ...
Video: Global warming and its effect on climate change

For a complete list of videos, visit our video library