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Ruksana

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  • March 10, 2017 at 5:10 pm #377601
    acf3e1c78472b26f05c1df812f3e9dbcee3aaf391ffa00740a2c2045d2c63493 80Ruksana
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    I struggled with the MCQ’s too and messed up all my knowledge about throughput ..:(

    August 21, 2016 at 8:17 pm #334412
    acf3e1c78472b26f05c1df812f3e9dbcee3aaf391ffa00740a2c2045d2c63493 80Ruksana
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    We assume the PV to be an “a”

    The general formula for annual perpetuity is
    PV x (1 + 1/rate of interest)= Annual Perpetuity

    a x (1+1/ 0.08)= 5000
    a x ( 1.08/0.08)=5000
    a x (13.5)= 5000
    a=5000/13.5
    a= 370.37 or 370 to the nearest $

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