Question
(Round to the nearest cent.) i. What is the present value of a perpetuity of $1 comma 5001,500 per year discounted back to the present
(Round to the nearest cent.)
i. What is the present value of a perpetuity of
$1 comma 5001,500
per year discounted back to the present at
66
percent?
$25,000.00 25,000.00
(Round to the nearest cent.)
j. What is the present value of an annuity of
$1 comma 8001,800
per year for 10 years, with the first payment occurring at the end of year 10 (that is, ten
$1 comma 8001,800
payments occurring at the end of year 10 through year 19), given a discount rate of
1212
percent?
$3,667.55 3,667.55
(Round to the nearest cent.)
k. Given a discount rate of
88
percent, what is the present value of a perpetuity of
$1 comma 2001,200
per year if the first payment does not begin until the end of year 10?
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