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A property will provide $10,000 at the end of each year forever. if its value is $125,000, what must be the discount rate?

Respuesta :

Aliwohaish12

The discount rate is


10,000÷125,000=0.08×100=8%

abiolataiwo2015

What must be the discount rate is 8%.

To determine the discount rate we are going to divide $10,000 by $125,000

Using this formula

PVP=C/R

Let plug in the formula

$125,000=$10,000/R

R=$10,000/125,000

R=.08×100

R=8%

Inconclusion the discount rate is 8%.

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