A perpetuity has a PV of $25,000. If the interest rate is 11%, how much will the perpetuity pay every year? OA. $2,750 OB. $1,375 OC. $1,650 OD. $2,200

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A: Number of Payment = n = 10Payment = p = $2700Interest Rate = r = 5.5%

Q: dinary annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%.

A: Given information :

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Q: Ques 5 and 6

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Q: What's the present value of a perpetuity

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Q: What's the present value of a perpetuity

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A: Present value of annuity due= Pmt*((1-(1+r)^-n)/r) *(1+r)

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Q: Ques 1 and 2

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