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You Are Currently at Time Period 0,and You Will Receive

Question 43

Multiple Choice

You are currently at time period 0,and you will receive the first payment on an annual payment annuity of $100 in perpetuity at the end of this year.Six full years from now you will receive the first payment on an additional $150 in perpetuity,and at the end of time period 10 you will receive the first payment on an additional $200 in perpetuity.If you require a 10 percent rate of return,what is the combined present value of these three perpetuities?


A) $2,349.50
B) $2,526.85
C) $2,685.42
D) $2,779.58
E) $2,975.40

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