Present value of a perpetuity, Finance Basics

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Present value of a perpetuity

Please answer the following question:

1. A business borrows $296,926 for 9 years at an annual rate of interest of 6%. If payments are annual and the loan will negatively amortize by $49,469, what will be the annual payment required?

2. What is the present value of a perpetuity making quarterly payments in arrears in the amount of $8,054 per quarter, and the appropriate annual rate of interest is 9%?

Please describe in detail and illustrate out all workings.

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Finance Basics: Present value of a perpetuity

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Finance Basics: Present value of a perpetuity

Reference No:- TGS0876783

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Recent Questions Asked Finance Basics

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Present value of a perpetuity

Reference No:- TGS0876783

Recent Questions Asked Finance Basics

Q : What is the current price of bond

Q : Bonds pay interest semi-annually

Q : Individual retirement account

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