The Present Value of a $100 Per Year Perpetuity at 10

question 33

Multiple Choice

The present value of a $100 per year perpetuity at 10 percent per year interest rate is $1,000. What would be the present value of this perpetuity if the payments were compounded continuously?

• A)$1,000.00
• B)$1,049.21
• C)$1,024.40
• D)$986.14

---

Definitions:

Event Nodes

Points in a decision tree where outcomes of a particular decision or chance event are shown.

Decision Tree

A graphical representation used to make decisions and show the possible outcomes, including chance event outcomes, resource costs, and utility.

R&D Process

The sequence of activities or steps that an organization follows to conceive, design, develop, and bring to market new products or services, often involving scientific research and technological development.

Decision Nodes

Points within a decision tree where the choice between different alternatives is made, leading to different outcomes or branches.