Question
1)the value of an asset that appreciates at 10% per annum approximately doubles in seven years. What is the approximate PV of an asset that
1)the value of an asset that appreciates at 10% per annum approximately doubles in seven years. What is the approximate PV of an asset that pays $1 a year in perpetuity beginning in year 8.
2) if an interest rate is 7%, what is the value of the following three investments: A- an investment that offers you $100 a year in perpetuity with the payment at the end of each year. B- a similar investment with the payment at the beginning of each year. C- a similar investment with the payment spread evenly over each year.
3) a piece of land produces an income that grows by 5% per annum. If the first year's income is $10,000, what is the value of the land?
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