options for the first blank are: $180,000 $200,000 $160,000 $240,000

options for the second blank are: $352,941 $235,294 $200,000 $176,471

options for the third blank are: "an inverse" or "a direct"

Which of the following are characteristics of a perpetuity? Check all that apply. The value of a perpetuity cannot be determined. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows. A perpetuity is a stream of regularly timed, equal cash flows that continues forever. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows. Your grandfather wants to establish a scholarship in his father's name at a local university and has stipulated that you will administer it. As you've committed to fund a $10,000 scholarship every year beginning one year from tomorrow, you'll want to set aside the money for the scholarship immediately. At tomorrow's meeting with your grandfather and the bank's representative, you will need to deposit (rounded to the nearest whole dollar) so that you can fund the scholarship forever, assuming that the account will earn 5.00% per annum every year. Oops! The bank representative just reported that he misquoted the available interest rate on the scholarship's account. Your account should earn 4.25%. The amount of your required deposit should be revised to relationship between the interest rate earned on the account and the present This suggests there is value of the perpetuity