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

Expert Solution

Present Value of Perpetuity
PV=A/r-g

PV= Present Value
A= Annuity
r= interest rate
g= growth rate


=$475/0.09

=$5,277.780

jeff jeffy answered 2 years ago

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