Perpetual stream of annual payments

Reference no: EM1364279

Given an interest rate of 10% per year, what is the value at the end of 5 years of a perpetual stream of 120$ annual payments starting at the end of year 9?

I dont understand the time fator in this question - i.e how do you encorporate year 9 and year 5 into the appropriate formula

Reference no: EM1364279

Questions Cloud

Write command to list all the employees in year : Write the command to list all the employees hired in 2003 and 2004. Sort the rows by the hire_date column in descending order.

Implementation and sustainability of health programs : Show the importance of accountability in the implementation and sustainability of health programs

Compute by how much monetary policymakers must change : Compute by how much monetary policymakers must change the nominal money supply for the expectations of firms and workers to be realized.

What is the frequency of the string : When a guitar string is sounded along with a 441-Hz tuning fork, a beat frequency of 4.00 Hz is heard. When the same string is sounded along with a 437-Hz tuning fork, beat frequency is 8.00 Hz. What is the frequency of the string.

Perpetual stream of annual payments : Given an interest rate of 10 percent per year, what is the value at the end of five years of a perpetual stream of 120$ annual payments starting at the end of year 9?

Explain benefits of a global market : What are some of the benefits of a global market and why? List at least 2 benefits, weighing any short-term and long-term impacts.

What are the basic functions of managing the data resource : What are the basic functions of managing the data resource and How are these functions different in a global company as opposed to an exclusively local company?

Applying course concepts and enterting : Discuss how the concepts of this course can be applied to your current or future work position. Discuss whether or not you feel adequately prepared to enter the accounting profession as a Certified Public Accountant.

When aimed vertically and suddenly released : Three charges are situated at corners of a rectangle. How much energy would be expended in moving the 8µC charge to infinity.

User Account

All Pages