Question

In: Finance

What is the present value of $10,000 per year in perpetuity at an annual interest rate of 10 percent if the perpetuity starts in year=4?

What is the present value of $10,000 per year in perpetuity at an annual interest rate of 10 percent if the perpetuity starts in year=4? 


$10,000 

$75,131.48 

$1,000 

$68,301.35 

$82,402.36

Solutions

Expert Solution

PV (at Yr0) = $75,131.48

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

What is the present value of a $600 perpetuity if the interest rate is 4%? If...
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%: $
What is the present value of a perpetuity of $80 per year if the discount rate...
What is the present value of a perpetuity of $80 per year if the discount rate is 11%?
At an annual interest rate of i, i ≥ 0, the present value of a perpetuity...
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,...
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,...
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?
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
Find the present value of the given perpetuity. ​ $43200 per year at the rate of...
Find the present value of the given perpetuity. ​ $43200 per year at the rate of 6​% yearly
Given a discount rate of 13 ​percent, what is the present value of a perpetuity of...
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...
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....
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
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT