A perpetuity will pay 300 per year starting five years


1. Samantha has holdings of 250 troy ounces of platinum, currently valued at $825 dollars per ounce. She estimates that the price of platinum will rise to $874.50 per ounce in the next year. If the interest rate is 12%, should she sell the platinum today?

2. A perpetuity will pay $300 per? year, starting five years after the perpetuity is purchased. What is the present value? (PV) of this perpetuity on the date that it is? purchased, given that the interest rate is 9%?

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Financial Management: A perpetuity will pay 300 per year starting five years
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