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11 February, 20:40

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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  1. 11 February, 22:14
    0
    = $10,000

    Explanation:

    Present Value of a Perpetuity = Annual Payment : Discount Rate

    = $1000 / 0.1

    Present Value of a Perpetuity

    = $10000
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