#2, #3 #7

Exercise 2-2: Perpetuity Please use the following information for questions I to 9 Your friend promises you a perpetuity of paying you some money every year forever l. If the first payment of $10 is at year 1 and r perpetuity ? 10%, what is PVO for this 2. If the first payment of S10 is at year l and r-10%, what is PVO for the payment at year 100? 3. If the first payment of $10 is at year 2 and r-1096, what is PVO for this perpetuity? 41f the first payment is at year 1, r-10% and PVO for this perpetuity is $80, what is the first payment? 5. If the first payment is at year 2, r-10% and PVO for this perpetuity is $80, what is the first payment ? 6 If the payment is S10 and PVO for this perpetuity is $120, what is the interest rate ? first payment is at year l, the first 7. If the first payment is at year 2, the first perpetuity is $150, what is the interest rate? 8. If the first payment is at year 1, r-10% and PVO for this perpetuity is $100, what is the PVO for the payment made at year 20? 9 the first payment is at year 2, r-10% and PVO for this perpetuity is $80, what is the PVo for the payment made at year 60