A Perpetuity Will Pay $1000 Per Year,starting Five Years After

question 18

Multiple Choice

A perpetuity will pay $1000 per year,starting five years after the perpetuity is purchased.What is the present value (PV) of this perpetuity on the date that it is purchased,given that the interest rate is 4%?

• A)$1410
• B)$20,582
• C)$21,370
• D)$34,604

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