Compute the present value of a perpetuity

Reference no: EM131974458

Question: Find the present value of a perpetuity that pays $3800 every three years starting seven years from now. Assume the perpetuity has an annual effective rate of interest of 8.9%. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131974458

Questions Cloud

Shift in demand or supply : Think about a good or service for which you believe there has been a shift in demand or supply.

Company uses straight voting : how much will it cost you to buy a seat if the company uses straight voting?

World economic forum is a free worldwide association : World Economic Forum is a free worldwide association, whereas the Heritage Foundation is an exploration and instructive organization

Find the profitability index for series of future cash flows : Find the profitability index (PI) for the following series of future cash flows, assuming the company's cost of capital is 10.61 percent.

Compute the present value of a perpetuity : Find the present value of a perpetuity that pays $3800 every three years starting seven years from now. Assume the perpetuity has an annual effective rate.

Find the after-tax return to a corporation : Find the after-tax return to a corporation that buys a share of preferred stock at $33, sells it at year-end at $33, and receives a $3 year-end dividend.

Mismatch in duration between its assets and liabilities : Depository institutions generally have a mismatch in duration between its assets and liabilities.

Find the unpaid balance on the debt : Find the unpaid balance on the debt. (Round your answer to the nearest cent.) After 5 years of monthly payments on $150,000 at 5% for 25 years.

Calculate the present value of net benefits assuming : Calculate the present value of net benefits assuming that the benefits are realized at the end of each of the three years.

User Account

All Pages