A Perpetuity Will Pay $1000 Per Year, Starting Five Years

question 36

Multiple Choice

A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?

• A) $1456
• B) $19,867
• C) $21,320
• D) There is no solution to this problem.

---

Definitions:

Secondary Alkyl Halide

An organic compound in which a halogen atom is bonded to a secondary carbon, i.e., a carbon atom connected to two other carbon atoms.

Dichlorination Products

The chemical compounds resulting from the addition of two chlorine atoms to another molecule, often used in the context of organic chemistry reactions.

Free Radical Chlorination

A reaction that involves the substitution of hydrogen atoms in hydrocarbons with chlorine atoms through a free radical mechanism.

Monobromination Products

Products resulting from the substitution of a single hydrogen atom in an organic molecule with a bromine atom.