Question
How much less is a perpetuity of $6,200.00 worth than an annuity due of the same amount for 47 payments? Assume an interest rate of
How much less is a perpetuity of $6,200.00 worth than an annuity due of the same amount for 47 payments? Assume an interest rate of 10%. (Notice: if the present value of the perpetuity is higher, then the number will be negative.)
Multiple Choice
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$5,969.41
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$6,512.08
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$5,426.74
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$4,884.06
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
