Question

Present value interest factor of a perpetuity represents

Select one:

a.

Reciprocal of interest rate in decimal terms

b.

Reciprocal of interest rate in percentage terms

c.

None of these

d.

Interest rate in percentage terms

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Answer 1

Answer:

your ans is B part

b. reciprocal of interest rate in percentage terms

Answer 2

Answer:

pv represent the present value of the perpetuity, a represents the amount of periodic payments and represents the discount rate, yield,or interest rate.

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