A Perpetuity Has a PV of $32 000

question 31

Multiple Choice

A perpetuity has a PV of $32 000. If the interest rate is 10%, how much will the perpetuity pay every year?

• A)$3 100
• B)$2 909
• C)$3 520
• D)$3 200

---

Definitions:

Customer Relationship Era

A business approach focusing on building long-term relationships with customers to enhance loyalty and lifetime value.

Market Orientation

A business approach where the needs and wants of customers guide all marketing decisions and strategies.

Customer Value

Refers to the perceived worth of a product or service in the eyes of the customer, balancing its benefits against its cost.

Product Orientation

A business philosophy that focuses on the quality and attributes of the product itself rather than customer needs or desires.