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What is the present value of a perpetuity that pays $1,000 per year if the appropriate interest rate is 10%?
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2 votes
What is the present value of a perpetuity that pays $1,000 per year if the appropriate interest rate is 10%?

User Thomas Q
by
8.7k points

1 Answer

2 votes

Answer:

= $10,000

Step-by-step explanation:

Present Value of a Perpetuity = Annual Payment รท Discount Rate

= $1000 / 0.1

Present Value of a Perpetuity

= $10000

User Paul Drummond
by
6.4k points
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