Solved

A Perpetuity Pays $50 Per Year and Interest Rates Are

Question 85

Multiple Choice

A perpetuity pays $50 per year and interest rates are 9 percent. How much would its value change if interest rates decreased to 6 percent?


A) $150.00 increase
B) $150.00 decrease
C) $277.78 increase
D) $277.78 decrease

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions