Moe purchases a $100, 30-year annuity. Larry purchases a $100 perpetuity. In both cases, payments begin in one year, and the appropriate interest rate is 10%. What is the present value of Larry's
Payments that will occur from year 31 onwards?
A) $57.31
B) $58.11
C) $81.21
D) More than $100
Correct Answer:
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