What is the present value of perpetuity

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1. What is the present value of the following cash flow stream, discounted at a rate of 12.0%? [Type in your answer to the nearest dollar]. Years: 0 1 2 3 4 Cash Flows: $0 $1,500 $3,000 $4,500 $6,000

2. What’s the present value of a perpetuity that pays $225 per year, if the appropriate interest rate is 5%? [Type in your answer in dollars, to the nearest dollar].

3. Suppose you borrowed $12,000 at a rate of 9.0% and must repay it in four equal installments at the end of each of the next four years. How large would your payments be? [Type in your answer in dollars, to the nearest penny].

Reference no: EM131942854

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