kimberlyalonso5657 kimberlyalonso5657

02-07-2021
Business

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Mo will receive a perpetuity of $27,000 per year forever, while Curly will receive the same annual payment for the next 40 years. If the interest rate is 7.1 percent, how much more are Mo's payments worth

Respuesta :

eliasjakob954 eliasjakob954

02-07-2021

Answer:

380281.69-360900.85=19380.84

Explanation:

Perpetuity present value, PV=A/rate

Ordinary Annuity present value, PV= A[(1-(1+7.1%)^40)/7.1%)]

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