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    Financial Management Theory and Practice Study Set 4
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    Exam 4: Time Value of Money
  5. Question
    A Perpetuity Pays $85 Per Year and Costs $950
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A Perpetuity Pays $85 Per Year and Costs $950

Question 20

Question 20

Multiple Choice

A perpetuity pays $85 per year and costs $950.What is the rate of return?


A) 8.95%
B) 9.39%
C) 9.86%
D) 10.36%
E) 10.88%

Correct Answer:

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