Ruksana
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I struggled with the MCQ’s too and messed up all my knowledge about throughput ..:(
We assume the PV to be an “a”
The general formula for annual perpetuity is
PV x (1 + 1/rate of interest)= Annual Perpetuity
a x (1+1/ 0.08)= 5000
a x ( 1.08/0.08)=5000
a x (13.5)= 5000
a=5000/13.5
a= 370.37 or 370 to the nearest $
Announcement
All updated notes, lectures and tests are now available for the June 2026 sitting. Start studying →