Author Question: What is the present value of the following perpetuities? a. 200 per year discounted at 6 annually ... (Read 66 times)

humphriesbr@me.com

  • Hero Member
  • *****
  • Posts: 550
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?


af

  • Sr. Member
  • ****
  • Posts: 356
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
 

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

For a complete list of videos, visit our video library