You are currently at time period 0, and you will receive the first payment on an annual payment annuity of R100 in perpetuity at the end of this year.Six full years from now you will receive the first payment on an additional R150 in perpetuity, and at the end of time period 10 you will receive the first payment on an additional R200 in perpetuity.If you require a 10 percent rate of return, what is the combined present value of these three perpetuities?
A) R2,349.50
B) R2,526.85
C) R2,685.42
D) R2,779.58
E) R2,975.40
Correct Answer:
Verified
Q76: In its first year of operations, 1999,
Q77: Suppose you put R100 into a savings
Q77: A bank pays a quoted annual (simple)interest
Q78: Steaks Galore needs to arrange financing for
Q79: You are given the following cash flows.What
Q81: Your father, who is 60, plans to
Q82: You have some money on deposit in
Q83: Your company must make payments of R100,000
Q84: You have just purchased a life insurance
Q85: You will receive a R100 annual perpetuity,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents