3 What's the rate of return you would earn ifyou paid $1,480 for a perpetuity that pays$75 per year?a. 10.14%b. 5.34%c. 2.53%d. 10.68%e. 5.07%

Rate of return is the rate you earn on perpetuity i.e. amount initially paid.

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

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ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 4QTD

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Please help me with 9-7 ??‍♀️
a) What’s the rate of return you would earn if you paid $1,500 for a perpetuity thatpays $105 per year? b) At a rate of 8%, what is the present value of the following cash flow stream?$0 atTime 0; $100 at the end of Year 1; $300 at the end of Year 2; $0 at the end of Year 3;and $500 at the end of Year 4?

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What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $75 per year?