How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the annual rate of interest is 5%?
A、$1,200
B、$478,800
C、$480,000
D、$481,200
A、$1,200
B、$478,800
C、$480,000
D、$481,200
【参考答案及解析】
The present value of a perpetuity is： PV=a/r where a = annuity = $24,000 r = cost of capital as a proportion = 5% = 0.05 PV =24,000 / 0.05=$480,000
The present value of a perpetuity is： PV=a/r where a = annuity = $24,000 r = cost of capital as a proportion = 5% = 0.05 PV =24,000 / 0.05=$480,000