what is the present value of a Rs 1000 ordinary annuity that earns 8% annuality for an infinite number of periods
Answers
the present value of a Rs1000 is so you less
Answer:
The correct answer is Rs. 80.
Explanation:
The current value of a future sum of money, at a certain rate of return, is known as the present value. The flows of the destiny coins would be discounted. The value of the current future cash flows decreases as the discount price rises. The present price of incoming coins would be better the lower the bargain price was. The optimal cut-price fee for valuing future currency flows should be chosen.
You may determine if a certain amount of money today is more valuable than the same amount in the future by looking at the current pricing. The current rate tells you that the money you gain in the future is not worth the money you acquire today.
1, 000 ordinary annuity that earns 8% annually for an infinite number of periods Rs. 80.