A perpetuity has a PV of $32 000. If the interest rate is 10%, how much will the perpetuity pay every year?
A)$3 100
B)$2 909
C)$3 520
D)$3 200

Name: A perpetuity has a PV of $32 000. If the interest rate is 10%, how much will the perpetuity pay every year? A)$3 100 B)$2 909 C)$3 520 D)$3 200
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Question

Quizplus · Accepted Answer

The annual payment of a perpetuity is calculated as the present value (PV) multiplied by the interest rate. Therefore, $32,000 * 10% = $3,200.

A Perpetuity Has a PV of $32 000