What is the future value of a series of $5,000 end-of-the-year cash flows to be received forever if the required rate of return is 6.00% per year and the first cash flow is one year from today?
A)$83,333,333.33
B)$8,333,333.33
C)$83,333.33
D)This question cannot be solved for a future value.

Question

Quizplus · Accepted Answer

The future value of a perpetuity cannot be calculated because a perpetuity is an infinite series of cash flows, and thus does not have a finite future value.

What Is the Future Value of a Series of $5,000