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

question 55

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)$20,548
• D)$34,604
• E)$25,000