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Consider an investment that will pay us $ 5 0 per year for eternity. If our required return is 8 % , what is the

Consider an investment that will pay us $50 per year for eternity. If our required return is 8%, what is the value of this investment?
[Hint: PV=]
Suppose we were to buy an investment for $100 that paid us 10% per year in perpetuity, what would you expect to receive each year?
[Hint: PV=]
What is the future value of $10,000 in 10 years assuming an interest rate of 12% compounded monthly?
FV=C**
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