Problem #4: A perpetuity pays $4500 at the end of every month for 11 months of...
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Problem #4: A perpetuity pays $4500 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 10.6%, what is the present value of this perpetual annuity? Problem #4: 55222.27 Problem #4 Your Answer: Your Mark: Just Save Attempt #1 56468.06 0/2x Answer correct to 2 decimals. Submit Problem #4 for Grading Attempt #2 55222.27 0/2x Attempt #3 Attempt #4 Attempt #5 Attempt #6 Attempt #7 Attempt #8 Problem #4: A perpetuity pays $4500 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 10.6%, what is the present value of this perpetual annuity? Problem #4: 55222.27 Problem #4 Your Answer: Your Mark: Just Save Attempt #1 56468.06 0/2x Answer correct to 2 decimals. Submit Problem #4 for Grading Attempt #2 55222.27 0/2x Attempt #3 Attempt #4 Attempt #5 Attempt #6 Attempt #7 Attempt #8
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To find the present value of the perpetual annuity we can use the formula for the present value of a ... View the full answer
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date:
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