PV of Perpetuity = Perpetual Cash Flow / (er - 1)
= $800 / [e0.09 - 1]
= $800 / 0.0942= $8,494.89
An perpetuity has continuous payments at a rate of 800 per year. Find the present value...
9. An investment will generate $3100 per year in perpetuity. If the money is dispensed continuously throughout the year and if the prevailing annual interest rate remains fixed at 4% compounded continuously, what is the present value of the investment? Round the answer to two decimal places. State the answer in a complete sentence.
9. An investment will generate $3100 per year in perpetuity. If the money is dispensed continuously throughout the year and if the prevailing annual interest rate...
A bank makes payments continuously at a rate of $270 per year. The payments are made between times 7 and 10 (measured in years). Find the present value of these payments at time 3 using an annual effective rate of discount of 6%. Round your answer to two decimal places.
What is the present value of a perpetuity of $ 8,705 per year given an interest rate of 7.1%, assuming that the first cash flow occurs today? Round your answer to two decimal places and record without a dollar sign and without commas. Your Answer:
(1 point) Payments under a continuous perpetuity are made at the periodic rate of 1.03' at time t. The annual effective rate of interest is 0.12. Find the present value of the perpetuity. ANSWER-
(1 point) Payments under a continuous perpetuity are made at the periodic rate of 1.03' at time t. The annual effective rate of interest is 0.12. Find the present value of the perpetuity. ANSWER-
A recently-installed machine earns the company revenue at a continuous rate of 60,000t+45000 dollars per year during the first six months of operation and at the continuous rate of75000 dollars per year after the first six months. The cost of the machine is 161000 , the interest rate is 7% per year, compounded continuously, and T is time in years since the machine was installed. (a) Find the present value of the revenue earned by the machine during the first...
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What is the present value of a $500 perpetuity if the interest rate is 6%? If interest rates doubled to 12%, what would its present value be? Round your answers to the nearest cent. Present value at 6%: $ Present value at 12%: $ You borrow $85,000; the annual loan payments are $11,339.91 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. You have saved $5,000 for a down payment on...
Compute the present value of a perpetuity of $16,000 per year given an interest rate of 4 percent p.a., compounded monthly.
Question 12 of 15 The present value of a 8 year lease that requires payments of $850 at the beginning of every month is $78,800. What is the nominal interest rate compounded monthly charged on the lease? Round to two decimal places
Solve without excel
(1 point) Payments under a continuous perpetuity are made at the periodic rate of 1.03' at time t. The annual effective rate of interest is 0.12. Find the present value of the perpetuity. ANSWER-