A perpetuity makes its first annual payment of $143 exactly 20 years from today. The discount...
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A perpetuity makes its first annual payment of $143 exactly 20 years from today. The discount rate is 4.4% per annum compounded annually. 1) What is the present value of this perpetuity valued at exactly Year 13? (Round your answer to the nearest cent) 2) What is the present value of this perpetuity valued at exactly Year 0? (Round your answer to the nearest cent) A perpetuity makes its first annual payment of $143 exactly 20 years from today. The discount rate is 4.4% per annum compounded annually. 1) What is the present value of this perpetuity valued at exactly Year 13? (Round your answer to the nearest cent) 2) What is the present value of this perpetuity valued at exactly Year 0? (Round your answer to the nearest cent)
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To solve this problem we can use the formula for the present value of a perpetu... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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