A perpetuity pays $550 at the end of every month.The PV of the perpetuity is $36,000.What is the nominal annual rate (APR)on the perpetuity?
A) 18.33%
B) 9.17%
C) 19.96%
D) 13.42%
E) 15.15%

Question

Quizplus · Accepted Answer

PV = 11ea7fdb_fc19_8e15_a768_bf4dee291e37_TB2902_11 36,000 = 11ea7fdb_fc19_8e16_a768_2da317af6123_TB2902_11 i = 11ea7fdb_fc19_8e17_a768_ff2cd129a9a9_TB2902_11 = 1.5277%
1.5277% × 12 = 18.33%

A Perpetuity Pays $550 at the End of Every Month