Calculate the present value of a perpetuity bond

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Problem 1: How much must you deposit at the end of each year in an account that pays an annual interest rate of 20%, if at the end of 5 years you want P10,000 in the account? (Round your final answer up to 2-decimal places)

Problem 2: Calculate the present value of a perpetuity bond that is expected to pay P50 of interest per year forever if the investor requires an annual return of 8 percent.

Reference no: EM132915649

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