The present value of a perpetuity with an annual year-end payment of $1,000 and expected annual rate of return equal to 0.5% is closest to:
A) $20,000
B) $100,000
C) $200,000

Question

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The Answer of The present value of a perpetuity with an annual year-end payment of $1,000 and expected annual rate of return equal to 0.5% is closest to:
A) $20,000
B) $100,000
C) $200,000

The Present Value of a Perpetuity with an Annual Year-End