What Is the Present Value of $10,000 Per Year in Perpetuity

question 24

Multiple Choice

What is the present value of $10,000 per year in perpetuity at an annual interest rate of 10 percent? Assume the perpetuity starts in one year.

• A)$10,000
• B)$100,000
• C)$200,000
• D)$1,000

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Definitions:

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