A Perpetuity Has a PV of $32 000

question 31

Multiple Choice

A perpetuity has a PV of $32 000. If the interest rate is 10%, how much will the perpetuity pay every year?

• A)$3 100
• B)$2 909
• C)$3 520
• D)$3 200

Gain insight into the variety of planning files and their utilization in scheduling decisions.

Understand the definitions and differences between annuities due and ordinary annuities.

Recognize financial instruments or arrangements that fit the definition of a perpetuity.

Calculate the future value of investments with uniform or varying cash flows using appropriate financial formulas.