eBook What is the present value of a $100 perpetuity if the interest rate is 10%? If interest rates doubled to 20%, what would its present value be? Round your answers co the nearest cent. Present value at 10%: $ Present value at 20%: $

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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. Problem 5.16 (Present Value of a Perpetuity)
eBook
What is the present value of a $100 perpetuity if the interest rate is 10%? If interest rates doubled to 20%, what would its present value be? Round your answers
to the nearest cent.
Present value at 10%: $
Present value at 20%: $
Transcribed Image Text:. Problem 5.16 (Present Value of a Perpetuity) eBook What is the present value of a $100 perpetuity if the interest rate is 10%? If interest rates doubled to 20%, what would its present value be? Round your answers to the nearest cent. Present value at 10%: $ Present value at 20%: $
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