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March 10, 2017 at 5:10 pm #377601
Ruksana
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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
Ruksana
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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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