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
Answer:

Step-by-step explanation:
⟾Collect like terms
⟾Move the variable to the left
⟾Collect like terms again
⟾Divide both sides by -3
⟾ x = 45 ÷ 3
Hope it's helps you
Answer: a= 0.0231
Step-by-step explanation:
n=8
p=0.75
q=1 - 0.75 = 0.25
(p=x)
p(5) = 8C5 (0.25)^5 (0.75)^8-5
p(5)= 0.0231
Or 2.31%