Answered: Assume you will be paid $100 next year…

Assume you will be paid $100 next year and every year after, and the interest rate is 2%. Calculate the present value of this infinite future payments of $100.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Interest, Rent, And Profit

Section: Chapter Questions

Problem 1WNG

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Assume you will be paid $100 next year
and every year after, and the interest rate is
2%. Calculate the present value of this
infinite future payments of $100.

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