An annuity can be defined as the difference between two perpetuities. calculate the present vale of...

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An annuity can be defined as the difference betweentwo perpetuities. calculate the present vale of an annuity thatpays $2,500 per year for 10 years using a dicount rate of 6%. showhow finding the difference between the two perpetuities produce thesame answer as using the annuity formula.

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Answer a PV of ordinary annuity PMT 1 1 1 Interest rate Number of Years Interest rate Given PMT 2500 Discount rate 6 Number of years 10 Present value 2500 1 1 1 6 10 6 1840022 Present See Answer

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An annuity can be defined as the difference between two perpetuities. calculate the present vale of...

60.1K

Verified Solution

Question

Finance

An annuity can be defined as the difference betweentwo perpetuities. calculate the present vale of an annuity thatpays $2,500 per year for 10 years using a dicount rate of 6%. showhow finding the difference between the two perpetuities produce thesame answer as using the annuity formula.

Answer & Explanation Solved by verified expert

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