What is the present value of a $600 perpetuity if the interest
rate is 4%? If interest rates doubled to 8%, what would its present
value be? Round your answers to the nearest cent.
-Present value at 4%: $
-Present value at 8%: $
At an annual interest rate of i, i ≥ 0, the present
value of a perpetuity paying 10 at the end of each three-year
period, with the first payment at the end of year 3, is 34.21. At
the same annual effective rate of i, the present value of
a perpetuity paying 1 at the end of each four-month period, with
the first payment at the end of four months, is X.
Calculate X.
What is the present value of $1,700 per year, at a discount
rate of 10 percent, if the first payment is received 4 years from
now and the last payment is received 21 years from now?
Multiple Choice
$2,625.04
$10,475.13
$14,042.40
$10,265.63
$10,245.41
Assume a 10% annual interest rate.
(i) What is the present value of a 25 year, $900 annuity if the
first payment does not occur until 7 years from today?
(ii) What would be the present value of a perpetuity with the
same characteristics ($900, first payment in 7 six years).
What is the present value of a perpetuity that starts paying exactly two years from now 1,000 per year? Assume required rate of return is 10% $8,789.12 $10,000 $8,264.46 $9090.91
Given a discount rate of 13 percent, what is the present value
of a perpetuity of $1,400 per year if the first payment does not
begin until the end of year 10?
7. What is present value of perpetuity of $100 per year
if appropriate discount rate is 5%? If discount rate is increased
to 15% what is the present value of the perpetuity?
Find the value of $475 per quarter in perpetuity if the interest
rate is 9 percent. Do not write any symbol ($, #, &,...). Round
your answer to the nearest one-hundredth percentage point. For
example, write 1125.34 for $1,125.34