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

---

Definitions:

Earth's Surface

The outermost layer of the Earth, consisting of the crust and upper mantle, and characterized by landforms, water bodies, and living ecosystems.

Ecological Footprint

A measure of the impact of a person or community on the environment, expressed as the amount of land required to sustain their use of natural resources.

United States

A country located primarily in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its significant influence on world affairs in terms of politics, economy, and culture.