# Compute the present value of a perpetuity that pays \$ 7,142 annually given a required rate of return of 8 percent per annum. (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).

January 3, 2018
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January 3, 2018

Finance Basics

1.Compute the present value of a perpetuity that pays \$ 7,142 annually given a required rate of return of 8 percent per annum. (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).

2.Assume that you deposit \$ 9,805 each year for the next 15 years into an account that pays 14 percent per annum. The first deposit will occur one year from today (that is, at t = 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today? (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).