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4 years ago

A perpetuity has a PV of $34,000. If the interest rate is 6%, how much will the perpetuity pay every year

Business

1 answer:

Svetradugi [14.3K]4 years ago

6 0

Answer:

The perpetuity pays $2,040 every year.

Explanation:

The formula to find the present value of a perpetuity is

present value = cash flow/interest rate

In this question we are given the interest rate and present value and we need to find the cash flow, so we will just input these values in the formula.

Present value = 34,000

Interest rate =6%

34,000=Cash flow/0.06

34,000*0.06= cash flow

Cash flow =2,040

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Answer:

The answer is 9.00%

Explanation:

real risk-free rate = 3.00%

average expected future inflation rate = 5.90%

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= 3.00% + 5.90% + 0.10%

= 9.00%

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4 years ago

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Answer:

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3 years ago

All other things being equal, supply curves slope upwards from left to right because

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3 years ago

Let's say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how man

sveta [45]

Answer:

$240,000

Explanation:

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3 years ago