A perpetuity has payments of 1, 2, 3, ...., 98, 99, 100, 99, 98,
97, 96,...
A perpetuity has payments of 1, 2, 3, ...., 98, 99, 100, 99, 98,
97, 96, ...., 3, 2, 1, 2, 3, 4, ...., 99, 100, 99, 98, ....., 3, 2,
1, 2, ...., 99, 100, 99, 98, ...., 3, ,2, 1.... If the payments are
made annually, and the annual effective interest rate is 7%, Find
the value of the perpetuity at the time of the first payment.
Please give detailed calculation process, Thank you!
Perpetuity X has annual payments of 1,2,3,... at the end of each
year. Perpetuity Y has...
Perpetuity X has annual payments of 1,2,3,... at the end of each
year. Perpetuity Y has annual payments of q, q, 2q, 2q, 3q, 3q, ...
at the end of each year. The present value of X is equal to the
present value of Y at an annual effective interest rate of 10%.
Calculate q.
I'm new to perpetuities but basically understand how
perpetuities work. I also have a formula for perpetuities that
increase every year. I just can't figure...
1. A perpetuity-due has monthly payments in this pattern: Q, 2Q,
3Q, Q, 2Q, 3Q, Q,...
1. A perpetuity-due has monthly payments in this pattern: Q, 2Q,
3Q, Q, 2Q, 3Q, Q, 2Q, 3Q, . . . The present value of the perpetuity
is $700,000 and the effective annual discount rate is 6%. Find
Q.
2. A 30 year annuity-immediate has first payment $1200 and each
subsequent payment increases by 0.5%. The payments are monthly and
the annual effective rate is 8%. Find the accumulated value of the
annuity at the end of 30 years.
3....
A perpetuity with an annual payment of $1,000 (payments start N
years from today) has a...
A perpetuity with an annual payment of $1,000 (payments start N
years from today) has a present value (today) of $6,830. A second
perpetuity, which will begin five years after the first perpetuity
begins, has a present value of $8,482. The annual interest rate is
10 percent.
Determine the value of each
payment of the second perpetuity?
You are given a perpetuity that makes payments every two years,
with a payment at the...
You are given a perpetuity that makes payments every two years,
with a payment at the beginning of the year numbered 2n + 1, for n
= 0, 1, 2, …, equal to 1/((n+1)(n+2)*3n). Find the
present value of this perpetuity at time 0, given that the annual
effective interest rate is 4.5%.
Find the present value of an annuity in perpetuity that makes
payments of $70 at the...
Find the present value of an annuity in perpetuity that makes
payments of $70 at the end of year 6, year 12, year 18, year 24,
etc. and makes payments of $60 at the end of year 1, year 4, year
7, year 10, etc. and where effective annual interest is i =
7%.
1. Perpetuities in arithmetic progression. If a perpetuity has
first payment P and each payment increases...
1. Perpetuities in arithmetic progression. If a perpetuity has
first payment P and each payment increases by Q, then its present
value, one period before the first payment, is P/i + Q/i^2 Using
this formula, find the present value of a perpetuity-immediate
which has annual payments with first payment $360 and each
subsequent payment increasing by $40, at annual interest rate
1.3%.
The answer should be ($264,378.70).
2. Filip buys a perpetuity-immediate with varying annual
payments. During the first 5...
1. Find the present value of a 30-year annuity-due with
semiannual payments in which the first...
1. Find the present value of a 30-year annuity-due with
semiannual payments in which the first payment is $20,000, the
second payment is $21,600, the third payment is $23,328, the fourth
payment is $25,194.24, etc., assuming an annual effective rate of
interest of 16%.
2. Find the present value of a varying perpetuity-DUE in which
payments are made every two years with the first payment being
$245, and each payment thereafter is $150 larger than the previous
payment. Assume the...