PRESENT VALUE OF A PERPETUITY What is the present value of a

PRESENT VALUE OF A PERPETUITY What is the present value of a $900 perpetuity if the interest rate is 8%? Round your answer to the nearest cent. $

If interest rates doubled to 16%, what would its present value be? Round your answer to the nearest cent. $

Present Value of Perpetuity = Perpetuity/Discount rate So, Present Value of Perpetuity at 8% = $ 900 / 8% = $ 11,250.00 and Present Value of Perpetuity at 16% = $ 900 / 16% = $ 5,625.00