At 8.1% APR, how much would you need to invest to receive $3459 per year forever,...
At 8.1% APR, how much would you need to invest to receive $3459 per year forever, with the first payment one year from today? (Rounded to the nearest 10 cents.)
Homework Answers
Present value of the perpetuity payment each year= annual payment/discount rate
=$3,459/ 0.081
= $42,703.70
Therefore, I need to invest $42,703.70 today to receive $3,459per year forever.
In case of any query, kindly comment on the solution.
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