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emmasim [6.3K]
2 years ago
10

A perpetuity pays $100 each and every year forever. the duration of this perpetuity will be:_________

Business
1 answer:
Scrat [10]2 years ago
7 0

Perpetuity pays $100 each and every year forever. the duration of this perpetuity will be 12.11

Yield rate = 9% or 0.09

Duration of perpetuity = (1+ Interest Rate) / Interest Rate

                                  = 1+ 0.09 / 0.09

                                   = 1.09 / 0.09

                                    = 12.11

A perpetual annuity is a never-ending annuity or series of cash payments that lasts forever. True eternity is rare. For example, the UK government has issued them in the past. These were known as consoles and were all eventually redeemed in 2015. Cash flow is endless.

Learn more about perpetuity here: brainly.com/question/24261067

#SPJ4

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Which of the following formulas is used to compute the accounting rate of return?
tekilochka [14]

Answer:

Option (A) is correct.

Explanation:

Accounting rate of return is determined to take the efficient business decision related to the capital budgeting and it tell us whether to accept the proposal or not. The following is the formula:

Accounting rate of return = (Average Income ÷ Initial Investment)

For example:

Net profit for 3 years are as follows:

2012 - 13 = $50 million

2013-14 = $100 million

2014-15 = $150 million

Initial investment = $200

Average profit = ($50 + $100 + $150) ÷ 3

                        = $100

Accounting rate of return = (Average Income ÷ Initial Investment)

                                          = $100 ÷ $200

                                          = 0.5 or 50%

5 0
3 years ago
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mrs_skeptik [129]
<span>A. income statement debit column</span>
6 0
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You plan to make a series of deposits in an interest-bearing account. You will deposit $1,000 today, $2,000 in 2 years, and $8,0
solniwko [45]

Answer:

$5,641

Explanation:

DEPOSIT NOW  

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= $1992.6

IN 2 YEARS

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= $3354.20

IN 5 YEARS

= $8000 * FVIF 9%, 3 PERIODS

= $8000*1.2950

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WITHDRAWAL: IN 3 YEARS

= ($3000) * FVIF 9%, 5 PERIODS

= ($3000) * 1.5386

= ($4615.80)

IN 7 YEARS

= ($5000) * FVIF 9%, 1 PERIOD

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Total value = $1992.6  + $3354.20 + $10360  - $4615.80 - $5450

Total value = $5,641

So, the total future value after eight years is $5,641

7 0
3 years ago
What must the Nederlander Organization do effectively to take its musicals to foreign markets?
mart [117]

The Nederlander Organization must effectively use teaser and revealers promotion campaigns to take its musicals to foreign markets.

Option a

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This is an advertising campaign which creates a curiosity in the minds of consumers till the brands last ad. This type of campaign will keep the consumers always think about the product and ad which is going to be launched soon.  

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