| Chap 4 - 46 | ||||
| Calculating the present value of a perpetuity | ||||
| Given an interest rate of 6.4% per year, what is the value at t=7 of a perpetual stream of $3,250 payments that begin at t=15? | ||||
| PMT | 3250 | |||
| i | 0.064 | |||
| T | 7 | |||
| T | 15 | |||
| PV (T14) | 50781.25 | =D7/D8 (PMT / i) | ||
| PV (T7) | $32,893.64 | =PV(D8,D9,,-D13) | ||
Saturday, January 12, 2019
Finance Chapter 4 - 46 Calculating the present value of a perpetuity
Excel File
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment