2. An investment promises to pay a perpetuity of $100 per year starting from today. If the discount rate is 10% per year, how much should you pay for this investment? А $90.9091 $190.9091 ABCD с $1,000 $1,100

2. An investment promises to pay a perpetuity of $100 per year starting from today. If the discount rate is 10% per year, how much should you pay for this investment? А $90.9091 $190.9091 ABCD с $1,000 $1,100

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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Question

2. An investment promises to pay a perpetuity of $100 per year starting from today. If the
discount rate is 10% per year, how much should you pay for this investment?
A $90.9091
B
$190.9091
C $1,000
D $1,100

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