Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following

equations can be used to solve for the present value of a perpetuity?

$F\frac{V}{(1+r{)}^n}$

$PM\frac{T}{r}$

$PMT(\frac{1-[\frac{1}{(1+r{)}^n}]}{r})$

$PV(1+r{)}^n$Time Value of Money $1$ Assignment

$\backslash$table$[[$Term$,$Answer,,Description$],[$Discounting$,$grad,A$.,$A $6\%$ return that you could have earned if you had made a particular investment.$],[$Time value of money,grad,B$.,\backslash$table$[[$A cash flow stream that is generated by a share of preferred stock that is expected to pay$],[$dividends every quarter indefinitely.$]]],[$Amortized loan,grad,C$.,\backslash$table$[[$The concept that states that the timing of the receipt or payment of a cash flow will affect$],[$its value to the holder of the cash flow.$]]],[$Ordinary annuity,grad,D$.,\backslash$table$[[$A value that represents the interest paid by borrowers or earned by lenders, expressed as$],[$a percentage of the amount borrowed or invested over a $12-$month period.$]]],[$Annual percentage rate,grad,E$.,\backslash$table$[[$A process that involves calculating the current value of a future cash flow or series of cash$],[$flows based on a certain interest rate.$]]],[$Annuity due,grad,F$.,\backslash$table$[[$A cash flow stream that is created by an investment or loan that requires its cash flows to$],[$take place on the last day of each quarter and requires that it last for $10$ years.$]]],[$Perpetuity$,$grad,G$.,\backslash$table$[[$A series of equal cash flows that occur at the beginning of each of the equally spaced$],[$intervals $($such as daily, monthly, quarterly, and so on$).]]],[$Future value,grad,$H.,\backslash$table$[[$One of the four major time value of money terms; the amount to which an individual cash$],[$flow or series of cash payments or receipts will grow over a period of time when earning$],[$interest at a given rate of interest.$]]],[$Amortization schedule,grad,I.,A loan in which the payments include interest as well as loan principal.$],[$Opportunity cost of funds,grad,J$.,\backslash$table$[[$A table that reports the results of the disaggregation of each payment on an amortized$],[$loan$,$ such as a mortgage, into its interest and loan repayment components.$]]]]$

Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the present value of a perpetuity?

$F\frac{V}{1+r}n$

$PM\frac{T}{r}$

$PMT(\frac{1-[\frac{1}{(1+r{)}^n}]}{r})$

$PV(1+r{)}^n$