Determine the present value of a perpetuity

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1.) If money is worth 8%, determine the present value of a perpetuity of P1,000 payable annually, with the first payment due at the end of 5 years.

2.) A man is left with an inheritance from his father. He has an option to receive P2 M at the end of 10 years, however he wishes to receive the money at the end of each year for 5 years. If interest rate is 8%, how much would he receive every year?

Reference no: EM133067351

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