Question 4: What is the present value of a perpetuity $300 perpetuity discounted

Question

Question 4: What is the present value of a perpetuity $300 perpetuity discounted back to the present 8%? Question 4B: Replace $300 with the last 4 digits of your Panther ID, and 8% with the last digit of your Panther ID (if the last digit is O, use 5). Question 5: You are to buy a property in 5 years from today. You estimate that you will need $20,000 at that time. You would like to accumulate these funds by making equal annual deposits in your savings account, which pays 12% annual. If you make your first deposits at the end of this year, and you would like your account to reach $20.000 when the final deposit is made, how much will you have to deposit in the account annually? The following is a very.comprehensive and challenging.problem.If you are not able to complete allof Question 6: you would like to have $50,000 in 15 years. To cumulate this amount, you plan to deposit an equal sum in the bac Question 6B: Replace $50,000 with the last 4 digits of your Panther ID, and the interest rate of 5% with the last digit of your Panther ID (if the last digit is O, use 5). them, it is fine, k each year that earn 7% interest compounded annually, your first payment will be made at the end of the year.

Explanation / Answer

Qustion 4

Here payment = $300

discount rate =8%

Present value of perpetuity = payment.discount rate = 300/0.08 = $3,750

4(b) Last say my partenr's id last 4 digit = $3456

Discount rate = 6%

So present value = 3456/0.06 = $57600

Thanks

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