1.8. What is the present value of a cash flow of $200 per year forever (a perpetuity),...

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1.8. What is the present value of a cash flow of $200 per year forever (a perpetuity), assuming: (LO17W-3)

The interest rate is 18 percent.

The interest rate is 12 percent.

The interest rate is 6 percent.

a. Working with those same three interest rates, what are the future values of $200 today in one year? How about in two years?

b. Working with those same three interest rates, how long will it take you to double your money?

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Economics

ISBN: 9781259193156

10th Edition

Authors: David Colander

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Question Posted: Oct 16, 2024 04:02 AM

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1.8. What is the present value of a cash flow of $200 per year forever (a perpetuity),...

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Economics

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