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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 Essentials Of Investments ISBN:9781260013924 Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J. Publisher:Mcgraw-hill Education, FUNDAMENTALS OF CORPORATE FINANCE ISBN:9781260013962 Author:BREALEY Publisher:RENT MCG Financial Management: Theory & Practice ISBN:9781337909730 Author:Brigham Publisher:Cengage Foundations Of Finance ISBN:9780134897264 Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William Publisher:Pearson, Fundamentals of Financial Management (MindTap Cou... ISBN:9781337395250 Author:Eugene F. Brigham, Joel F. Houston Publisher:Cengage Learning 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 Essentials Of Investments ISBN:9781260013924 Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J. Publisher:Mcgraw-hill Education, FUNDAMENTALS OF CORPORATE FINANCE ISBN:9781260013962 Author:BREALEY Publisher:RENT MCG Financial Management: Theory & Practice ISBN:9781337909730 Author:Brigham Publisher:Cengage Foundations Of Finance ISBN:9780134897264 Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William Publisher:Pearson, Fundamentals of Financial Management (MindTap Cou... ISBN:9781337395250 Author:Eugene F. Brigham, Joel F. Houston Publisher:Cengage Learning 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.
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