As part of a lawsuit settlement, a company is ordered to make constant annual payments to a family’s estate in perpetuity. The first payment will be made in four years. Applying an interest rate of 5%, this settlement is valued at $1 million today. Calculate the amount of the perpetual payment.

Answer rating: 100% (QA)

To calculate the amount of the perpetual payment we need to use the formula for present v... View the full answer