Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show all work in excel! Thank you will upvote once both anwered! What is the present value of a perpetuity that will pay $10,000

Please show all work in excel! Thank you will upvote once both anwered!

  1. What is the present value of a perpetuity that will pay $10,000 in one year and grow at 3% annually, if the discount rate is 10%. (first payment at the end of this year).

    150,000.00

    142,857.14

    200,000.00

    198,756.22

    136,689.55

  2. You borrowed an amount three years ago. The terms of the loan calls for an annual payment of $2,717.36 each year for 10 years. If the interest rate on the loan is 6%, what is the outstanding balance today?

    15,169.34

    19,021.98

    Cannot be calculated

    16,745.12

    14,568.22

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Sterling Bonds And Fixed Income Handbook

Authors: Mark Glowrey

1st Edition

0857190423, 978-0857190420

More Books

Students also viewed these Finance questions

Question

Determine the amplitude and period of each function.

Answered: 1 week ago