Find the value of perpetual payments

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1. Find the value of perpetual payments of $10,000 to be received in 9 years if the interest rate is 10%.

2. Find the value of 10 payments of $25,000 to be received in 20 years if the interest rate is 12%.

3. Your father has asked for your help in planning his retirement. He would like to have $50,000 per year for 25 years when he retires in 15 years. You think he can earn 7% on his money. How much money does he have to invest today so that he can retire comfortably?

Reference no: EM131580244

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