What is the present value of the following perpetuities?
a. $200 per year discounted at 6% annually
b. $500 per year discounted at 9% annually
c. $1,000 per year discounted at 5% annually
d. $550 per year discounted at 8% annually
What will be an ideal response?
ANSWER
a. $3,333.33
b. $5,555.56
c. $20,000.00
d. $6,875.00
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