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Find the value of a perpetuity

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a) What is the present value of an annuity that pays $5,000 at the end of each year for 12 years, assuming a 15% rate?

b) What is the present value of an annuity that pays $5,000 at the beginning of each year for 12 years, assuming 15% rate?

c) Find the value of a perpetuity with $25,000 annual payments, assuming a 10% rate.

d) You received a loan that compounds 3% interest every 6 months. What is the APR ? What is the EAR?

Reference no: EM131401595

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