pilot paper question 27

This topic has 2 replies, 3 voices, and was last updated 13 years ago by Samuel Mayes.

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December 11, 2012 at 3:36 am #56337
rheamathew
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hi can somebody explain how question number 27 in the f2 pilot paper can be solved?thanks
December 11, 2012 at 5:18 pm #111226
Rianny
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5,000 = x + x/0,08
5,000 = 13·5 x
Value of annual perpetuity = 5,000/13·5 = $370
January 12, 2013 at 6:56 pm #112894
Samuel Mayes
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What Rianny and Muradm said.

The answer would be different if the perpetuity was paid in arrears i.e. CF/r

Cheers,

S
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