What is the present value of a Rs.1, 000 ordinary annuity that earns 8% annually for an infinite number of periods
Answers
Explanation:
1, 000 ordinary annuity that earns 8% annually for an infinite number of periods? A. Rs. 80.
Answer:
The answer is Rs. 80.
Explanation:
present value is the contemporary price of the future amount of money, at a designated fee of go back. The destiny coins flows would be discounted. The higher the discount price, the decrease is the existing value of the destiny cash flows. The lower the bargain price, the better would be the existing price of future coins flows. You should decide the ideal cut price fee for valuing future coins flows.
the prevailing price tells you if a amount of cash these days is really worth greater than the identical quantity inside the future. the existing fee indicates you that the cash you get hold of within the destiny is not well worth the money you acquire nowadays.
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