Question
Mr Manaton has recently won a competition where he has the choice between receiving $5,000 now or an annual amount forever starting now (i.e. a
Mr Manaton has recently won a competition where he has the choice between receiving $5,000 now or an annual amount forever starting now (i.e. a level perpetuity starting immediately). The interest rate is 8% per annum.
What would be the value of the annual perpetuity to the nearest $?
A $370 B $500 C $400 D $620
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ERP Digital License Management Audit And Compliance
Authors: Gangesh Thakur, Jay Kalaimani
1st Edition
1799104079, 978-1799104070
