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Which of the following are characteristics of a perpetuity? Check all that apply. The value of a perpetuity cannot be determined. The value of a
Which of the following are characteristics of a perpetuity? Check all that apply. The value of a perpetuity cannot be determined. The value of a perpetuity is equal to the sum of the present value of future cash flows A perpetuity is a stream of unequal cash flows. A perpetuity is a stream of equal cash flows that continues forever. The value of a perpetuity is a finite number. Your grandfather wants to establish a scholarship in his name at a local university, which you will administer. You've committed to a $10,000 scholarship every year, so you want to set aside the money for the scholarship now. How much do you need to deposit in an account today that pays 6.00% interest so that you can pay for the scholarship forever? O $158,333.34 O $166,666.67 O $200,000.00 O $208,333.34 what happens to the value of the perpetuity if the interest rate is 9.00%? O The present value of the scholarship decreases to $111,111.11 O The present value of the scholarship increases to $208,333.34
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