An Ordinary Perpetuity Has Semi-Annual Payments of $R and Is

question 32

Multiple Choice

An ordinary perpetuity has semi-annual payments of $R and is purchased for $25,000.It pays interest at j₂ = 9% for the first 5 years,and j₂ = 7% thereafter.What is R? (Answer to nearest dollar)

• A)$875
• B)$950
• C)$1038
• D)$1125

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