Question
A) What is the present value today of a 15-year annuity of $1,500 per payment if the discount rate is 10% and the first payment
A) What is the present value today of a 15-year annuity of $1,500 per payment if the discount rate is 10% and the first payment is 10 years from now?
B) What is the present value today of a growing perpetuity if the first payment is $500 and each successive payment grows at 2%? Assume the discount rate is 10% and the first payment is 5 years from now?
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Gapenskis Cases In Healthcare Finance
Authors: George H. Pink
6th Edition
1567939651, 978-1567939651
