A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) at time 0, given that the interest rate is 11%? Show your steps. A) $2695 B) $4312 C) $5390 D) $3234

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Chapter7: Using Consumer Loans
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Chapter 10 Discussion Q2

  • A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) at time 0, given that the interest rate is 11%? Show your steps.
  • A) $2695
  • B) $4312
  • C) $5390
  • D) $3234
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