Ask Question
Yesterday, 11:37

What is the present value of a $100 perpetuity if the interest rate is 10%? Round your answer to the nearest cent.

+3
Answers (1)
  1. Yesterday, 12:08
    0
    The correct answer is $1,000

    Explanation:

    According to the scenario, Given data are as follows:

    Cash flow = $100

    Interest rate = 10%

    So, present value can be calculated by following method:

    Present value = Cash Flow / Interest Rate

    Present value = $100 / 10%

    Present value = $100 / 0.1

    Present value = $1,000

    Hence, the correct answer is $1000.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What is the present value of a $100 perpetuity if the interest rate is 10%? Round your answer to the nearest cent. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers