A Perpetuity with a First Payment of $500 Grows at a Constant

question 13

Multiple Choice

A perpetuity with a first payment of $500 grows at a constant rate of 5%.If the interest rate is 7%,what is the Present Value of this perpetuity?

• A)$10,000
• B)$25,000
• C)$7,142.86
• D)$4,166.67
• E)$50,000

---

Definitions:

Employee Hourly Wage

The amount of money that an employee is paid for each hour of work.

Return On Earned Media Model

The Return On Earned Media Model measures the value that earned media (such as customer endorsements or press coverage) contributes to a company's objectives, in terms of both brand visibility and financial gain.

Social Media Tactics

Strategies used on social media platforms to achieve specific marketing, communication, or engagement objectives.

Target Audience

A specific group of consumers identified as the intended recipient of an advertising or marketing message.