Difference between stock intrinsic value and market price

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1. You want to have $81,000 in your savings account 12 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.80 percent interest, what amount must you deposit each year?

2. What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%?

3. Please use your own words to describe the difference between the stock's intrinsic value and its market price.

Reference no: EM131818499

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