Question: Show how you got your answer 1. What is the time 0 value of a $300 perpetuity at an interest rate of 3.5 percent? d.

Show how you got your answer

1. What is the time 0 value of a $300 perpetuity at an interest rate of 3.5 percent?

d. Given an interest rate of 4 percent per year, what is the value 3 years from now of a perpetual stream of $500 payments that begins 7 years from now?

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