Find out the present value


Problem:

A perpetuity of $1,000 per year beginning immediately is said to offer a 12% interest rate.

Required:

Question: What is its present value?

A. $8,333.33

B. $9,333.33

C. $10,000.00

D. $12,000.00

Note: Show all workings.

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Accounting Basics: Find out the present value
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