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You Will Receive a $100 Annual Perpetuity Starting at Year

Question 25

Multiple Choice

You will receive a $100 annual perpetuity starting at Year 0,a $300 annual perpetuity with the first payment at the end of Year 5,and a $200 semiannual perpetuity 1/2 − 1.0 = 7%. )


A) $2,091.86
B) $2,785.14
C) $4,213.51
D) Infinite;the future value of any perpetuity is infinite.
E) Cannot determine the value since some payments are received annually and some semiannually.

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