What is the present value of a perpetuity bond that will pay

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Problem 1: What annual interest rate would you need in order for your investment of $2,200 to grow to $17,500 in 12 years?

Problem 2: You are offered an annuity that will pay you $200 per year for each of the next 7 years. You are trying to decide between this investment opportunity and another opportunity where you could earn 5% on your money with an equal amount of risk. What is the most you should pay for this annuity?

Problem 3: What is the present value of a perpetuity bond that will pay you $70 of interest per year at an interest rate of 6%?

Reference no: EM132721567

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