Question
1. At a discount rate of ---%, what will be the present value of an $---- annual perpetuity? 2. Assume that you borrowed money from
1. At a discount rate of ---%, what will be the present value of an $---- annual perpetuity?
2. Assume that you borrowed money from your grandmother to attend college. Your deal with her is that you will pay her $----- per year for the next --- years with the first payment occurring at the end of this year. If your discount rate is ---%, what is the present value of these --- payments?
3. You plan to start investing at the end of this year and will invest $----- per year. If your rate of return is ---% and you invest every year for --- years, how much will you have on the day of your last investment?
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