Present value of a perpetuity
What is the present value of a $600 perpetuity if the interest rate is 5%? Round your answer to the nearest cent.
$
If interest rates doubled to 10%, what would its present value be? Round your answer to the nearest cent.
$
An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6.
A) If other investments of equal risk earn 10% annually, what is its present value? Round your answer to the nearest cent.
B) If other investments of equal risk earn 10% annually, what is its future value? Round your answer to the nearest cent.