Question: A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on

A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 10%?

A rich donor gives a hospital $1,000,000 one year from today. Each year after that, the hospital will receive a payment 6% larger than the previous payment, with the last payment occurring in ten years' time. What is the present value (PV) of this donation, given that the interest rate is 10%?

You have $5,000 today, but need $10,000 for the down payment on a new sailboat. If you put the money in a bank that offers 10% interest, how many years before you are able to make the sailboat down payment?

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