1) Ally wishes to leave a provision in her will that $1000 will be paid annually in...
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1) Ally wishes to leave a provision in her will that $1000 will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is 10%?Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer. (3 decimal places)
2) If the current rate of interest is 8%, then the present value (PV) of an investment that pays $1000 per year and lasts 4 years is closest to ________.Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer. (3 decimal places)
Related Book For
Fundamentals Of Financial Management
ISBN: 9780357517574
16th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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