To determine Determine the PV of perpetuity such that you can draw an income of $200,000 per year. Assume a constant APR at 6%. Explanation Given: Given that one has to draw $200000 per year income after retirement and APR being 6% constant rate. Formula Used: PV = A r Where: PV = Present Value of Perpetuity A = Fixed periodic payment r = Interest Rate/Discount Rate Calculation :

MyLab Math with Pearson eText -- Access Card -- for Using & Understanding Mathematics with Integrated Review

7th Edition

ISBN: 9780134715865

Author: Jeffrey O. Bennett, William L. Briggs

Publisher: PEARSON

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Chapter 4.C, Problem 28E

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Determine the PV of perpetuity such that you can draw an income of $200,000 per year. Assume a constant APR at 6%.

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Chapter 4.C, Problem 27E

Chapter 4.C, Problem 29E

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Chapter 4 Solutions

MyLab Math with Pearson eText -- Access Card -- for Using & Understanding Mathematics with Integrated Review

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