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please answer all parts to the question 10. Perpetuities Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of

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10. Perpetuities Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpetuities, answer the following questions. 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. A local bank's advertising reads: "Give us $45,000 today, and we'll pay you $800 every year forever. If you plan to live forever, what annual interest rate will you earn on your deposit? 1.78% 2.85% 2.49% 1.60% Oops! When you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $67,500. This revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to Grade It Now Save & Continue Continue without saving nager par The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the disco 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. A local bank's advertising reads: "Give us $45,000 today, and we'll pay you $800 every year forever. If you plan to live forever, what annu rate will you earn on your deposit? 1.789 2.85% 2.49% 1.60% reduce Oops! When you went into make your deposit, the bank represe incorrect and should have read 567,500. This revision, which will med restratto the amount of required deposit reported in the advertisement was the interest rate cared on your deposited funds will adjust yo Grade It Now Save & Continu Continue without av Ch 05: Assignment - Time Value of Money The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by 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. A local bank's advertising reads: "Give us $45,000 today, and we'll pay you $800 every year forever." If you plan to live forever, rate will you earn on your deposit? 1.78% 2.85% 2.49% 1.13% 1.60% 1.25% 1.37% 1.19% Oops! When you went incorrect and should ha earned interest rate to your deposit, the bank representative said the amount of required deposit reported in the advertise 7,500. This revision, which will the interest rate earned on your deposited funds, will 6 Grade It Now Save Continue

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