What is the present value of a $100 perpetuity if the interest rate is 6%? If interest rates doubled to 12%, what would its present value be?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
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Answer? ? General Accounting

What is the present value of a $100 perpetuity if the
interest rate is 6%? If interest rates doubled to 12%,
what would its present value be?
Transcribed Image Text:What is the present value of a $100 perpetuity if the interest rate is 6%? If interest rates doubled to 12%, what would its present value be?
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