What is the present value of perpetuity

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Reference no: EM132007357

1. What is the present value of a perpetuity of $5,148 per year given an interest rate of 7.1%, assuming that the first cash flow occurs today?

2. What is the future value exactly 27 years from today of a deposit of $1,262 made today into an account that pays interest of 17% p.a.?

3. If the price of a loaf of bread has tripled over the past 19 years, what has been the annual rate of inflation in the price of bread over that time period?

Reference no: EM132007357

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