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Perpetuities) What is the present value of the following? a. A $400 perpetuity discounted back to the present at 8 percent b. A $2,000 perpetuity

Perpetuities) What is the present value of the following?

a. A $400 perpetuity discounted back to the present at 8 percent

b. A $2,000 perpetuity discounted back to the present at 12 percent

c. A $180 perpetuity discounted back to the present at 9 percent

d. A $50 perpetuity discounted back to the present at 5 percent

  1. What is the present value of a $400 perpetuity discounted back to the present at 8 percent?

$ (Round to the nearest cent.)

  1. What is the present value of a $2,000 perpetuity discounted back to the present at 12percent?

$ (Round to the nearest cent.)

  1. What is the present value of a $180 perpetuity discounted back to the present at 9 percent?

$ (Round to the nearest cent.)

  1. What is the present value of a $50 perpetuity discounted back to the present at 5 percent?

$ (Round to the nearest cent.)

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