Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

Knowledge Booster

Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Recommended textbooks for you

  • Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    Essentials Of Investments

    ISBN:9781260013924

    Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

    Publisher:Mcgraw-hill Education,

    Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    FUNDAMENTALS OF CORPORATE FINANCE

    ISBN:9781260013962

    Author:BREALEY

    Publisher:RENT MCG

    Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    Financial Management: Theory & Practice

    ISBN:9781337909730

    Author:Brigham

    Publisher:Cengage

  • Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    Foundations Of Finance

    ISBN:9780134897264

    Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William

    Publisher:Pearson,

    Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    Fundamentals of Financial Management (MindTap Cou...

    ISBN:9781337395250

    Author:Eugene F. Brigham, Joel F. Houston

    Publisher:Cengage Learning

    Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    Corporate Finance (The Mcgraw-hill/Irwin Series i...

    ISBN:9780077861759

    Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

    Publisher:McGraw-Hill Education

  • Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    Essentials Of Investments

    ISBN:9781260013924

    Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

    Publisher:Mcgraw-hill Education,

    Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    FUNDAMENTALS OF CORPORATE FINANCE

    ISBN:9781260013962

    Author:BREALEY

    Publisher:RENT MCG

    Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    Financial Management: Theory & Practice

    ISBN:9781337909730

    Author:Brigham

    Publisher:Cengage

    Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    Foundations Of Finance

    ISBN:9780134897264

    Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William

    Publisher:Pearson,

    Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    Fundamentals of Financial Management (MindTap Cou...

    ISBN:9781337395250

    Author:Eugene F. Brigham, Joel F. Houston

    Publisher:Cengage Learning

    Whats the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5 %?

    Corporate Finance (The Mcgraw-hill/Irwin Series i...

    ISBN:9780077861759

    Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

    Publisher:McGraw-Hill Education

    What is the present value of 10000 per year in perpetuity at an annual interest rate of 10 percent assume the perpetuity starts in one year?

    $1,000PV = (10,000/0.10) = 100,000. B .

    What's the present value of $1525 discounted back 5 years if the appropriate interest rate is 6% compounded monthly *?

    Or, Present Value = 1525 / 1.35.

    What is the present value PV of an annuity due with five payments of $2500 at an interest rate of 5.5 %?

    Answer and Explanation: The answer is d. $11,262.88.

    How do you calculate interest rate perpetuity?

    Divide the annual payment amount by the present value. As an example, if the perpetuity is selling for $10,000 and offered $500 per year, you would divide $500 by $10,000 to get 0.05. Multiply this figure by 100 to convert into percentage format. In the example, the perpetuity offers a 5 percent interest rate.