Question
Find the PV of a stream of payments lasting 4 years. Each payment is for $300, and the discount rate is 5%. The payments are
Find the PV of a stream of payments lasting 4 years. Each payment is for $300, and the discount rate is 5%. The payments are all received at the end of the year, starting with the first payment, received exactly one year from the present.
2.Find the PV of the following perpetuity:
Yearly payment = $5,000 (received at the end of each year)
Discount rate = 8%
How do I answer this? I am confused?
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
