If You Own a Perpetuity of $100 and If the Discount

question 178

Multiple Choice

If you own a perpetuity of $100 and if the discount rate is 5 percent, then its present value

• A)cannot be determined unless we know the number of years
• B)is $95.21
• C)is $105
• D)is $2, 000
• E)is infinite

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