Calculate the present values for the perpetuity: (1) Annual amount $20000, discount rate 8% (2) Annual amount $10000, discount rate 10% .
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Tim T.
Calculate the present value A=$20000, r=8%, compounded monthly, t=7 years
a What is the present value of an annuity which pays out $€ 10,000$ at the end of each year for the next 10 years if the interest rate is equal to $6 \%$ ? b What is the present value of an annity which pays out $€ 20,000$ at the end of each year for the next 10 years if the interest rate is equal to $6 \%$ ? c What is the present value of an annuity which pays out $€ 10,000$ at the end of each year for the next 10 years if the interest rate is equal to $12 \%$ ?
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