Present value of perpetuity-present value of perpetuity

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1. The present value of a perpetuity that pays $F every year when the annual rate of discount is i is?

2. Consider a three-year fixed-payment security that has a present value of $1,000. If the annual rate of discount is 7 percent, the payment made at the end of each year is

3. The price of a certain amount of goods and services a year back was $200. If price increased by 4 percent during the year, how much money is required to buy the same amount of goods today?

Reference no: EM13838857

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