How much will the perpetuity pay every year

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Question - A perpetuity has a PV of $18,056.65. If the interest rate is 10.86%, how much will the perpetuity pay every year?

1. Assume that you currently have $63,078 in the bank. That you are going to receive $621 yearly until the day of your retirement (22 years from now). What is the present value of all these cash flows if the interest rate is 8.55%.

2. Assume that you are going to receive $571 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.65%

3. Assume that you currently have $54,152 in the bank. That you are going to receive $534 four times a year until the day of your retirement (30 years from now). What is the present value of all these cash flows if the interest rate is 6.87%.

Reference no: EM132827795

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