Answer:
Present Value = $1666666.67
Step-by-step explanation:
Present Value of a Growing Perpuity is calculated using the following formula
PV =D/(r - g)
Where D = Dividend
r = Discount Rate
g = Growth rate
D = $50,000
r = 7%
r = 7/100
r = 0.07
g = 4%
g = 4/100
g = 0.04
PV = D/(r-g)
Becomes
PV = $50,000/(0.07-0.04)
PV = $50,000/0.03
PV = $1,666,666.67
So the Present Value of the perpuity is $1,666,666.67
8 total pens....4 are black
first pick, probability of being black is 4/8
2nd pick. without replacing, probability is 3/7
probability of a black pen picked first and then another black pen picked again is : 4/8 * 3/7 = 12/56 = 0.21
