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10. 11 5-11: Perpetuities Present value of a perpetuity a. What is the present value of a $500 perpetuity if the interest rate is 7%?

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10. 11 5-11: Perpetuities Present value of a perpetuity a. What is the present value of a $500 perpetuity if the interest rate is 7%? Round your answer to the nearest cent. $ 12 13. o 14. b. If interest rates doubled to 14%, what would its present value be? Round your answer to the nearest cent. 15, $ 16

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