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  • Apr 6, 2009, 01:42 PM
    trandan
    Solving Perpetuity
    What would $10,000 at a discount rate of 12% be at the end of 10 years? It is also stating not perpetuiy... which doesn't that mean forever?
  • Apr 7, 2009, 05:25 AM
    ROLCAM

    At the end of 10 years = $ 2,785.01

    I have shown you calculations for 50 years.

    1 10,000.00 8,800.00
    2 8,800.00 7,744.00
    3 7,744.00 6,814.72
    4 6,814.72 5,996.95
    5 5,996.95 5,277.32
    6 5,277.32 4,644.04
    7 4,644.04 4,086.76
    8 4,086.76 3,596.35
    9 3,596.35 3,164.78
    10 3,164.78 2,785.01
    11 2,785.01 2,450.81
    12 2,450.81 2,156.71
    13 2,156.71 1,897.91
    14 1,897.91 1,670.16
    15 1,670.16 1,469.74
    16 1,469.74 1,293.37
    17 1,293.37 1,138.17
    18 1,138.17 1,001.59
    19 1,001.59 881.40
    20 881.40 775.63
    21 775.63 682.55
    22 682.55 600.65
    23 600.65 528.57
    24 528.57 465.14
    25 465.14 409.32
    26 409.32 360.20
    27 360.20 316.98
    28 316.98 278.94
    29 278.94 245.47
    30 245.47 216.01
    31 216.01 190.09
    32 190.09 167.28
    33 167.28 147.21
    34 147.21 129.54
    35 129.54 114.00
    36 114.00 100.32
    37 100.32 88.28
    38 88.28 77.69
    39 77.69 68.36
    40 68.36 60.16
    41 60.16 52.94
    42 52.94 46.59
    43 46.59 41.00
    44 41.00 36.08
    45 36.08 31.75
    46 31.75 27.94
    47 27.94 24.59
    48 24.59 21.64
    49 21.64 19.04
    50 19.04 16.75

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