Question: What is the present value, when interest rates are 4.5 percent, of a $300 payment made every year forever (assume annual compounding)? $287.08 Not

"What is the present value, when interest rates are 4.5 percent, of a $300 payment made every year forever (assume annual compounding)? "

$287.08

Not possible to compute with the data provided

"$6,666.67 "

$13.50

$313.50

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

needing help with these questions QUESTION 12 3.125 "What is the present value, when interest rates are 7.5 percent of a $200 payment made every year forever (assume annual compounding)? $186.05...

Q:

Hello. I'm looking for some help completing my finance project. (10% total course grade) There are quite a few questions. (40 total) I can check the answers one time before submitting. Hoping for...

Q:

Problem 5-9 Present Value of a Perpetuity (LG5-5) What's the present value, when interest rates are 8.5 percent of a $90 payment made every year forever? (Round your answer to 2 decimal places.)...

Q:

1.Which of the following is legal duty between two parties where one party must act in the interest of the other party? Agency theory Angel investor Fiduciary Investment banker 2.This should be the...

Q:

can someone please help me with question 24 and question 25 24 Regarding your condo, five years go by. The condo appreciated 3% each year. What is the value of your home equity? Regarding your condo,...

Q:

1) Approximately how many years are needed to double a $100 investment when interest rates are 8.50 percent per year? (Round your answer to 2 decimal places.) 2) Determine the interest rate earned on...

Q:

Problem 5-47 Low Financing or Cash Back? (LG5-4, LG5-9) A car company is offering a choice of deals. You can receive $1,500 cash back on the purchase or a 2.1 percent APR, 5-year loan. The price of...

Q:

To borow S3,700, you are offered an add-on interest loan at 9.3 percent with 12 monthly payments Compute the 12 equal payments. (Round your answer to 2 decimal places.) Equal payment Compute the EAR...

Q:

You wish to buy a $9,000 dining room set. The furniture store offers you a 3-year loan with an 10 percent APR. What are the monthly payments?How would the payment differ if you paid interest only?...

Q:

please answer 12,14,15 i will upvote Page 1 > of 2 C 1 Short Computations (12 points each) What is the FV in three years of $500 deposited today, earning 7:50%TA)? Answer in dollars to no decimal...

Q:

An accounting firm is trying to decide between IT training conducted in-house and the use of third party consultants. To get some preliminary cost data, each type of training was implemented at two...

Q:

When firms price discriminates, they: a. lose surplus from consumers who would have bought at the profit- maximizing uniform price. b. sell to new consumers that would not have bought at the...

Q:

a What percentage of 40 years is 8 years? b What percentage of 8 years is 40 years?

Q:

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.