An increasing perpetuity-immediate makes annual payments. The first payment is 100. and each subsequent payment is...
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An increasing perpetuity-immediate makes annual payments. The first payment is 100. and each subsequent payment is larger than the preceding payment by an amount X. Based on an annual effective interest rate of 1096, the present value of the perpetuity at time O is one-half of its present value at time 20 (1.e., the present value at time 20 of the payments that will occur at time 21 and later). What is the value of X? Multiple choice: 9.14, 9.61, 10.00, 8.25 An increasing perpetuity-immediate makes annual payments. The first payment is 100. and each subsequent payment is larger than the preceding payment by an amount X. Based on an annual effective interest rate of 1096, the present value of the perpetuity at time O is one-half of its present value at time 20 (1.e., the present value at time 20 of the payments that will occur at time 21 and later). What is the value of X? Multiple choice: 9.14, 9.61, 10.00, 8.25
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ANSWER C is the correct answer 1000 A perpetuity is a security that pays for an infinite amount of t... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Posted Date:
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