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1. What is the present value of OMR 8,000 per year in perpetuity at an annual interest rate of 6%? Assume the perpetuity starts
1. What is the present value of OMR 8,000 per year in perpetuity at an annual interest rate of 6%? Assume the perpetuity starts in one year. 2. You would like to have enough money saved to receive OMR 80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start one year from the date of your retirement. The annual interest rate is 8 percent.)
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