if the annual rate is 5% and the annual infinity (forever) payment is $200, what is the present value of perpetuity? a. $4000 b. $10 O c. $1000 d. $40

Q: A perpetuity paying $1 at the beginning of each 6-month period has a present value of $20. Another…

A: Perpetuity is special kind of annuity in which there are payments forever and for infinite period…

Q: What is the present value of a $700 perpetuity if the interest rate is 5%? If interest rates doubled…

A: The present value is the value of an asset or liability as of a specific date, adjusted for the time…

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $2,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the…

A: We have the following information: Annuity: $24,000 Rate of Interest: 5%

Q: 1.If Rs. 4 becomes Rs. 10 in 50 years at simple interest, the rate % p.a. is?

A: Simple interest is interest computed on principal amount only not on interest accrued or accumulated…

Q: A perpetuity-due with annual payments of 100 has a duration of 26.88 years at an annual effective…

A: Annual payment = 100 Duration of perpetuity due = 26.88 i = Interest rate

Q: son.1

A: The objective of the question is to calculate the present value of an annuity. An annuity is a…

Q: Mary is going to receive a 32-year annuity of $9,700 per year. Nancy is going to receive a…

A: We need to use the present value of the ordinary annuity formula to calculate the present value of…

Q: What is the present value of perpetuity of $100 per year if the appropriate discount rate is 7…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: What is the present value of an $800 perpetuity if the interest rate is 8%? If interest rates…

A: Present value of perpetual cash flows is computed by following formula:-PV = wherePV = Present value…

Q: son.2

A: The objective of the question is to calculate the present value of an annuity. An annuity is a…

Q: Please help me with 9-7 ??‍♀️

A: Excel Spreadsheet:

Q: s: Solve edch fhe follOwing Find the present value and the amount of Future value of the general…

A: Present Value/Future Value: It is  the current value of a future sum of money at a  specified rate…

Q: Question: Compute the present value (PV) of an annuity that pays $320 forever if the opportunity…

A: In the given question we need to compute the present value of an annuity that pays $320 forever.

Q: What is the present value of a 3 year, $3,000 per year annuity at 3 percent? Select one: a. $8,590…

A: The present value of an annuity is the current value of a series of equal payments to be made or…

Q: A perpetuity pays $85 per year and costs $3,580. What is the rate of return? Select the correct…

A: Given:Annual Payment = $85Cost of the Perpetuity = $3,580

Q: 2. An investment promises to pay a perpetuity of $100 per year starting from today. If the discount…

A: A perpetual annuity is a never-ending series of equal cash flows where the investment is done today…

Q: Principal Rate Mode of Payment Monthly Monthly Semi-annually Semi-annually Semi-annually Term 1.…

A: Future value of an annuity can be calculated using the FV Function in excel. Present value of an…

Q: What amount would you have if you deposited $2,500 a year for 25 years at 8 percent (compounded…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 25 years?…

A: A perpetuity is a type of annuity. It is that annuity that goes on forever.

Q: P= P1,000 r= 5% t=5 years m=2 What is the present value of an annuity due?

A: Payment (P) = P 1000 r = 5%, m = 2, hence semiannual compounding Effective interest rate (r) = (1 +…

Q: Use the ordinary annuity formula shown to the right to determine the accumulated amount in the…

A: An annuity is a payment series where the holder gets a fixed amount in return for a lump sum…

Q: How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments…

A: Given information: Annuity : $2,000 Number of payments : 30 Rate of interest : 10%

Q: Compute the present value (PV) of an annuity that pays $320 forever if the opportunity cost is 8 per…

A: Given details are : Annual cashflow = $320 Opportunity cost = 8% = 0.08 From above details we…

Q: What is the present value of a perpetuity of P150,000 payable quarterly if money is worth 4%…

A: Quarterly payment = Q = P 150000 Interest rate = 4% semiannually

Q: find the present value of 3 year, 500 annuity at 4%

A: Solution Given Time period (n) 3 year Annuity 500 Rate of interest 4%…

Q: Find the present worth of perpetuity of P 20,000 payable quarterly if money is worth 10% compounded…

A: Quarterly payment (P) = P 20,000 Interest rate = 10% Quarterly interest rate (r) =…

Q: 11. At the end of each of the next 6 years you will receive cash flows of $12,000. If the…

A: We need to use present value of ordinary annuity formula below to calculate value of annuity.  where…

Q: What’s the present value of a perpetuity that pays Php250 per year if the appropriate interest rate…

A: In finance, the time value of money concept states that the money available today is considered…

Q: How much more is a perpetuity of $1,500 worth than an annuity of the same amount for 20 years?…

A: Solution:- When an equal amount is received each period at end of period, it is called ordinary…

Q: if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present…

A: Perpetuity refers to the series of periodic payments that have no ending i.e. investors or…

Q: Q. No. 02: Find the future value of the following annuities. The first payment in these annuities is…

A: Using Excel FV Function

Q: After how many months will an annuity earning 2.4% annually be worth $500 if $25 is deposited…

A: Interest Rate = 2.4% Annually Rate = 2.4%/12 = 0.2% Future Value (FV) = $500 Monthly Deposit (PMT) =…

Q: What is the future value of an annuity due if your required return is 10%, and annual payments are…

A: The time value of money is a core principle in finance, asserting that a given amount of money today…

Q: $11,000 annually at 5% for 10 years.

A: The present value of annuity can be calculated by using the EXCEL PV function. The same is as…

Q: What is the Macaulay duration of an increasing perpetuity-IMMEDIATE where the first payment is $100…

A:

Q: a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity, b.…

A: Annuity refers to a constant and fixed stream of payments or cash flows. In case of ordinary annuity…

Q: The present value of an annuity of X pesos payable annually for 10 years, with the first payment at…

A: Present value (PV) = P189,481.25 Interest rate (r) = 5% Number of annual payments (n) = 10 Period of…

Q: Compute the present value (PV) of an annuity that pays $320 forever if the opportunity cost is 10…

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: question 6

A: Step 1: Given Value for Calculation Interest Rate = r = 12.50%Annual Payment = p = $5500 Step 2:…

Q: If you put up $28,000 today in exchange for a 8.75 percent, 19-year annuity, what will the annual…

A: Annuity is that under which investor will received the equal amount every year which includes the…