question 7

A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 4%?

$1410

$20,582

$21,370

There is no solution to this problem.

Question 19 1 pts

A bank offers a home buyer a 25-year loan at 8% per year. If the home buyer borrows $120,000 from the bank, how much must be repaid every year?

$7896.45

$9845.89

$10,786.66

$11,241.45