Q7: What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%? Answer: P value if 5% = P2,000.00, P value if 7% = P1,428.57, P value if 11% = P909.09 %3D

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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(a) Identify the Given and the Unknown or what is being asked in the problem

(b)Provide the formula to be used

(c)Plug in the given in the formula if there is a derivation of the formula please show it

(d)Box the final answer. however, the final answer is already included in the problem, what you need to do is to match your answer and the answer in the book.  Because in the book they only provide the answer but not the solution.

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Q7: What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%?
Answer: P value if 5% = P2,000.00, P value if 7% = P1,428.57, P value if 11% = P909.09
Transcribed Image Text:Q7: What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%? Answer: P value if 5% = P2,000.00, P value if 7% = P1,428.57, P value if 11% = P909.09
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