to be paid on the first of each month and a lease period of three years A series

Question

to be paid on the first of each month and a lease period of three years A series of equal (constant) cash flows (receipts or payments) that are expected to continue forever A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it last for 10 years Amortization schedule - ] . Opportunity cost of funds . Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the present value of a perpetuity? FV/ (1 + r)n O PMT /r O PV x (1 + r)n Flash Player WIN 27,0,0,183 Q3 3.34.1 # 2004-2016 Aplia, All rights reserved guge Leaming except as notud. Ai rights resairved Continue withour s

Explanation / Answer

Answer is PMT/r Present Value of a Perpetuity = PMT / r PMT = Periodic payment r = Discount rate

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.