Answer to Question #78827 in Financial Math for allisyn

Question #78827

What's the present value, when interest rates are 8.0 percent, of a $55 payment made every year forever?

Expert's answer

If interest rates are 8.0 percent, of a $55 payment made every year forever,
then the present value of perpetuity is PV =$55/0.08 = $687.5.

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