Present value of stream of ordinary annuity cash flows

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1. What is the present value of a perpetuity that pays $100 every month forever? The discount rate is 12% APR. (round to the nearest dollar)

2. The present value of a stream of ordinary annuity cash flows of $100 per year is $702 when valued utilizing a 7% annual rate. By approximately how much would the present value change if this were a delayed annuity with the first payment in three years from now? If the difference is negative, enter the answer as a negative. If the answer is unsolvable without knowing the annuity term, enter 0.

(round to the nearest dollar)

Reference no: EM131576179

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