Value of the growing perpetuity

Assignment Help Accounting Basics

Reference no: EM13125095

You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $20,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 3.4 percent annually. If you use a 9 percent discount rate for investment products, what is the present value of this growing perpetuity?

Reference no: EM13125095

Questions Cloud

Computing the rate of disappearance of hcl : Calculating the rate of disappearance of HCl, The rate of disappearance of HCl was measured for the following reaction

Explain why is direct labor a poor base for allocating over : Explain why is direct labor a poor base for allocating overhead in many companies? In what situation would it be a strong and better way to allocate overhead? What bases do you feel are the most commonly used by most large companies? Explain.

Do results agree with statement : About 5.5 percentage points in either direction from what would have been obtained by seeking out all Ohio State University female students." Do your results agree with this statement?

Romantic poetry : What kind of poet was Wordsworth?Write about his life and his place in Romantic poetry.Explicate(explain)one of his poems,or compare and contrast a few of his poems.

Value of the growing perpetuity : The product promises an initial payment of $20,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 3.4 percent annually. If you use a 9 percent discount rate for investment products, what is the present value..

Determine the rate law expression : Experiment ClO2 (M) OH (M) Rate (M/s) Determine the rate law expression and calculate the value of the rate of constant.

What is the total pressure in the bulb : A metal bulb is filled with 10.2 g of CHCl3 and 0.322 g of CH4 (two gases). What is the total pressure in the bulb if the temperature is 345 C and the volume is 50.0 mL.

Intercultural conversations involves : What interaction tool useful during intercultural conversations involves

Knowledge of theories of economic growth : Prepare a report that is designed to evaluate how the differences in the economic growth in both countries can be reconciled with your knowledge of theories of economic growth.

User Account

All Pages