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
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa023b74f-a66a-48f2-9eaf-bf846b3870ab%2F47953b0a-a487-480e-a683-87ce0459890f%2Fmqz08vn_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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