Given an Interest Rate of 4

question 100

Multiple Choice

Given an interest rate of 4.85 percent per year, what is the value at year t = 8 of a perpetual stream of $2,500 payments that begin at year t = 25?

• A) $23,042.78
• B) $24,160.35
• C) $48,211.12
• D) $50,877.64
• E) $51,546.49

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Definitions:

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