You will inherit perpetuity that will pay annual payment

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Reference no: EM131884500

What is the present value of a series of payments received each year forever, starting with $400 paid one year from now and the payment growing in each subsequent year by 5%? Assume a discount rate of 7%. Please round your answer to the nearest cent.

Suppose that you will inherit a perpetuity that will pay an annual payment $1000. the first payment will occur 10 years from now( end of the year 10) if the discount rate is 5%,how much is the worth today? what constant payment for the next 10 years?

Reference no: EM131884500

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