A Perpetuity Pays $550 at the End of Every Month

question 36

Multiple Choice

A perpetuity pays $550 at the end of every month.The PV of the perpetuity is $36,000.What is the monthly periodic rate on the perpetuity?

• A) 1.53%
• B) 1.62%
• C) 1.85%
• D) 2.04%
• E) 3.25%