Question

A perpetuity pays $1000 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it pays double that amount. If the effective ANNUAL rate is 10.4%, what is the present value of this perpetual annuity?

Answer #1

Give the present value of a perpetuity that pays $1,000 at the
end of every year. The first payment occurs at the end of the fifth
year and the annual effective interest rate is 3%.

A perpetuity pays $390.26 at the start of each year.
The present value of this perpetuity at an annual effective
interest rate i is equal to the present
value of an annuity which pays 800 at the start of the first year,
790 at the start of the second year,
780 at the start of the third year and so on for 20 years. Find i
to 1 significant figure.

A perpetuity with payments of 1 at the end of each year has a
present value of 40. A 10-year annuity pays X at the beginning of
each year. Assuming the same effective interest rate, the present
values of the perpetuity and the 10-year annuity are equal. Find
X.

A 11-year annuity pays $1,400 per month, and payments are made
at the end of each month. The interest rate is 14 percent
compounded monthly for the first Five years and 12 percent
compounded monthly thereafter.
Required:
What is the present value of the annuity?
$97,790.41
$95,872.95
$131,778.37
$1,150,475.38
$93,955.49

A 20 year annuity pays $2,250.00 per month. Payments are made at
the end of each month. If the interest rate is 11% compounded
monthly for the first 10 years, and 7% compounded monthly
thereafter, what is the Present Value of annuity?

A 20-year annuity pays $2,250 per month, and payments are made
at the end of each month. If the interest rate is 11 percent
compounded monthly for the first ten years, and 7 percent
compounded monthly thereafter, what is the present value of the
annuity?

A 10-year annuity pays $2,100 per month at the end of each
month. If the discount rate is 8 percent compounded monthly for the
first seven years and 8 percent compounded monthly thereafter, what
is the present value of the annuity?

The present value of perpetuity of $600 paid at the end of each
year plus the present value of a perpetuity of $800 paid at the end
of every 5 years is equal to the present value of an annuity of k
paid at the end of each year for 25 years. Interest is 6%
convertible quarterly. Calculate k. solution with details

the present value of a perpetuity of 6500 paid at the end of
each year plus the present value of a perpetuity of 8500 paid at
the end of every 5 years is equal to the present value of annuity
of k paid at the end of each year of 25 years. interest is 6%
convertible quarterly. calculate k. please show and explain
work

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...

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