For 2% p.a. rate, the discount factor for perpetuity is ______, while the compound factor for...

Question

Question

For 2% p.a. rate, the discount factor for perpetuity is ______, while the compound factor for perpetuity is ______.

business finance

Answer 1

Answer #1

Discount factor for Perpetuity = 1/(1+r) = 1/(1+0.02) = 50

Compound factor for perpetuity = (1+r)^n = (1+ 0.02)^infinite = infinity

Answer : C : 50, infinity (Thumbs up please)

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Answer 2

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