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

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Definitions:

Trade Accounts Receivable

Amounts owed by customers to a business, specifically from sales transactions.

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and sale.

Amounts Due

Financial obligations or debts that are payable to another party or entity.

Grace Period

A time frame after a due date during which a payment can be made without penalty or impact on credit standing.