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Irina18 [472]
3 years ago
15

Which of the following statements is true?

Business
1 answer:
netineya [11]3 years ago
4 0

Answer:

d. The present value of perpetuity varies directly with the annual repayments.

Explanation:

A perpetuity is a security or bond which pays a fixed amount of cash flow at a fixed interval forever. So the amount it pays stays the same and it keeps paying for ever. The formula to find the present value of a perpetuity is

Cash flow of perpetuity/Interest Rate

So if the annual payment is 100 and the interest rate is 5% the present value of the annuity is

100/0.05=2,000

If we keep the interest rate the same at 5% and increase the cash flow by 100 to 200 the new present value of the perpetuity is

200/0.05=4,000

This proves that the present value of a perpetuity varies directly with the annual repayments or cash flow of perpetuity.

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Answer:

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Explanation:

5 0
3 years ago
PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST)
Georgia [21]

Answer:

the answer is C. People who earn a college degree are likely to earn more than those who have a high school education

5 0
2 years ago
Why does a country need to have a comparative advantage in a particular product in order to engage in trade with another country
harkovskaia [24]

Answer:

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2 years ago
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skad [1K]

Answer:

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Explanation:

Data provided in the question

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4 0
3 years ago
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Answer:

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