After retirement, Andy plans to buy bonds in a perpetual fund. What amount must Andy place in a perpetual fund today, if it earns 4.8% compounded semi-annually and the first monthly payment of $500 in perpetuity will be made one year from today?
A) $126 244
B) $120 873
C) $120 396
D) $119 629
E) $125 000
Correct Answer:
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