To calculate the present value of a perpetual annual payment of $2,665 with an interest rate of 5.4% compounded annually, divide the annual payment amount by the interest rate yielding $49,351.85 as the present value.
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Present Value of $2,665 Payment Forever at 5.4% Interest
1. What is the present value, when interest rates are 5.4% of a $2,665.00 payment made every year
forever (assume annual compounding)?" "$2,528.46" "$26,032.41" " $49,351.85 " *$2,808.91 "
"$52,016.85" "$46,823.39" "$2,665.00 *