Payment if it is divided with interest rate will be formula of
A. future value of perpetuity
B. present value of perpetuity
C. due perpetuity
D. deferred perpetuity
Answer: Option B
Solution (By Examveda Team)
Payment if it is divided with interest rate will be formula of present value of perpetuity. A perpetuity is a type of annuity that receives an infinite amount of periodic payments. An annuity is a financial instrument that pays consistent periodic payments. As with any annuity, the perpetuity value formula sums the present value of future cash flows.This Question Belongs to Commerce >> Financial Management
Join The Discussion