If You Own a Perpetuity of $500 and If the Interest

question 41

Multiple Choice

If you own a perpetuity of $500 and if the interest rate is 4 percent,then its present value _____

• A)cannot be determined unless the number of years is known.
• B)is $2,000.
• C)is $504.
• D)is $12,500.
• E)is infinite.