What's the Present Value of a Perpetuity That Pays $250

question 124

Multiple Choice

What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%?

• A) $4, 750
• B) $5, 000
• C) $5, 250
• D) $5, 513
• E) $5, 788

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Definitions:

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The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

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