What's the present value of a perpetuity

Q: Find the present value of a perpetuity paying $50,000 annually if the discount rate is 6%.

A: In the given question we require to calculate the present value of a perpetuity. In case of…

Q: What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the…

A: The future value of a single payment is only referred to as simple future value. An annuity requires…

Q: What is the future value of an ordinary annuity of $2,000 for 4 years, if interest rates are 6…

A: Given: Interest rate = 6% Future value of ordinary annuity = $2000

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: What’s the present value of a perpetuity that pays $1,000 per year beginning1 year from now, if the…

A: Computation:

Q: What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate…

A: Given details are : Annual payment = $3800 Interest rate = 5% = 0.05 From these details we need to…

Q: A. What's the future value of a 10%, 5-year ordinary annuity that pays $100 each year? Round your…

A: A. Future value is $610.51.

Q: sent value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amou

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: What's the present value of a perpetuity that pays $1,700 per year if the appropriate interest rate…

A: The present value of perpetuity is calculated as ratio of cash flows and the discount rate

Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…

A: present value of a perpetuity = Annual payment/Discount rate

Q: What is the present value of a $90,000 annual annuity for 10 years with an additional $1,000,000…

A: The present value of investment is the sum of present value of annuity and the present value of…

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $300 each year? If this was an…

A: Here, To Find: Future value of an ordinary annuity =? Future value of an annuity due =?

Q: For given information answer the Questions no (3) and (4) for a 10,000 per month annuity that has a…

A: FV=P1+in-1iFV=Future valueP=Periodic paymenti=rate of returnn=number of period

Q: What is the amount that an investor wants to pay for a perpetuity that will provide $20,000 per year…

A: Perpetuity is referred as the security which pays a never-ending stream of cash flows. It is the…

Q: What is the future value of an 11%, 5-year ordinary annuity that pays $350 each year? Do not round…

A: Formula: Future value of Annuity = P x [ ( 1 + R )N - 1 ] / R N = Number of years R = Rate of…

Q: 3.) Find the present value of an annuity in perpetuity where payments are $1, 000 at the beginning…

A: As per the information:Annuity payment in 1 year, 3 year and so on=$1000Annuity payment in 2 year, 4…

Q: What is the present value of a perpetuity that pays $250 per year if the appropriate interest rate…

A: In the given question we are given five options regarding present value of perpetuity and we need to…

Q: What’s the present value of a 5-year ordinary annuity of $100 plus an additional$500 at the end of…

A: Given information: Cash flows from 1 to 5 years is $100 Lump sum amount at the end of 5th year is…

Q: What is the future value of an 8%, 5-year ordinary annuity that pays $350 each year? Do not round…

A: Interest rate (r) = 8% Annual payment (P) = $ 350 Number of annual payments (n) = 5

Q: Find the present value of a perpetuity of P15,000 payable semi-annually if money is worth 8%…

A: A perpetuity is a series of continuous payments made at regular intervals. It can also be understood…

Q: What is the present value of RM30,256 perpetuity per year discounted at 7%? Select one: a.…

A: Perpetuity refers to a sequence of payment i.e. periodic payments that are made by an investor into…

Q: The present value of an annuity is payable for 4 years, with the first payment at the end of 10…

A: An annuity is a series of payments for a certain period of time and at a certain rate of interest.…

Q: What is the present value of an ordinary annuity of P47,000 each year for eight years assuming a…

A: Solution Concept Ordinary annuity means the annuity which is received at the end of each period…

Q: By using the calculate the future value of a 5 - year ordinary annuity , if the annual interest is…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: A perpetuity pays $85 per year and costs $2,780. What is the rate of return?

A: In this question we need to compute rate of return on perpetuity from following details : Payment…

Q: Consider the data in the following table: Perpetuity Annual amount discount rate A 100,000…

A: In order to compute the present value of a perpetuity, the annual amount is divided by the discount…

Q: What is the present value of a perpetuity with payments starting one year from now.  The first…

A: Present value of perpetuity can be calculated by formula that cash flow of first year divided by…

Q: Assume a 9% interest rate compounded annually. What annual deposit is necessary to give $10,000 in…

A: Future Value  $             10,000.00 Time Period 6 Interest Rate 9.00%

Q: What is the future value of $117,000 invested for 5 years at 14% compounded monthly?

A: Componded Monthly: When a investment is componded monthly then the interesr will be calculated on…

Q: What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the…

A: The perpetuity is the annuity that happens for a perpetual period. In other words, it is the equal…

Q: What is the future value of an ordinary annuity with annual payments of $1200 for 20 years at 10%…

A: An annuity is a constant stream of cash flows. An ordinary annuity is one in which cash flows takes…

Q: RM 50 is deposited every month for 2 years at 12% compounded monthly. What is the future value of…

A: An annuity is a series of cash flows with a fixed payment over a specific time period. The future…

Q: What is the present value of a 30 year annuity with payments of $1,600 per year if interest rates…

A: Computation:

Q: What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year?…

A: End of Year payments =850 Nominal interest rate = 8% Present value of perpetuity=Equal cash flow…

Q: Find the future value and present value using the ordinary annuity and. No. Principal Rate Mode of…

A: Given, The payments to calculate the future value and present value of annuity.

Q: What is the present value of a perpetuity with payments starting one year from now.  The first…

A: A perpetuity is a type of security that pays a constant stream of fixed cash flows for an infinite…

Q: What is the amount that an investor wants to pay for a perpetuity that will provide $20,000 per year…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: present value of a perpetuity with annual cash flows of $1,000 each year is $15,000. What is the…

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: How much will be the future value of a 5-year ordinary annuity which has annual payments of $200,…

A: The question gives the following information:

Q: Find the discounted value of an ordinary simple perpetuity paying $2100 at the end of half-year, if…

A: The discounted value is the value of the sum received at time 0 or the current period. It is the…

Q: What is the present value or price of a 10 year $20,000 annuity with an interest rate of 5% $1.9M…

A: Present value of annuity can be calculated as: = Annuity * Present Value annuity factor (i%, n…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.