Calculate the present value of perpetuity

Assignment Help Business Economics

Reference no: EM13736828

Perpetuity A pays $ 100 at the end of each year. Perpetuity B pays $ 32 at the end of each quarter. The present value of Perpetuity A is $ 1428.57. Calculate the present value of Perpetuity B using the same effective annual rate of interest.

Reference no: EM13736828

Questions Cloud

Interest rate compounded annually : If you borrowed $24,000 today and you have to pay them back in five equal payments over 10 years (one payment every 2 years). With 8% interest rate compounded annually, what is the amount of each payment? (C=?)

What is the implied rate of return : If a $24 per share stock has a P/E ratio of 20 and pays out 40% of its profits in dividends, how large is its dividends? Also what is the implied rate of return?

Research on today business leaders : In a three- to five- page paper, excluding title page and references page, analyze the influence of leadership style on ethical decision making, including specific examples drawn from research on today's business leaders. To conclude your analysis..

Foreign country quality of care : Compare a foreign country's quality of care to the United States' quality of care. Compare a foreign country's cost of health care to the United States' cost of health care.

Calculate the present value of perpetuity : Perpetuity A pays $ 100 at the end of each year. Perpetuity B pays $ 32 at the end of each quarter. The present value of Perpetuity A is $ 1428.57. Calculate the present value of Perpetuity B using the same effective annual rate of interest.

Proportional tax must be just affordable under lump-sum tax : Show that the consumer is better off with a lump-sum tax rather than a proportional tax on wage income given that either tax yields the same revenue for the government. You must use a diagram to show this. (Hint: the consumption bundle the consumer c..

Foreign medical education program : Explain how foreign medical education programs for physicians are accredited. How do foreign medical education programs for physicians compare to medical education programs in the United States?

Dealer is advertising a non-negotiable all-inclusive deal : You want to buy a new car and have $5,000 available for a down payment. You can afford a monthly car payment of $400. The maximum length of loan you want to take is 5 years. Your credit rating is not so good and the best car loan you can get is for a..

Increased access to wireless technology and lighter weight : With increased access to wireless technology and lighter weight, the demand for laptop computers has increased substantially. Laptops have also become easier and cheaper to produce as new technology has come online. Despite the shift in demand, price..

User Account

All Pages