What is the value of a perpetuity with an annual payment of $100 and a discount rate of 6%?

Part a: 1 perpetuity problem what is the value of a perpetuity

The present value of a perpetuity with an annual payment of $100 and a discount rate of 6% is $1,666.67. This can be calculated by taking the annual payment ($100) divided by the discount rate (6%) which equals $1,666.67.