The present value of an annuity with cash flows forever of $12,000 at the end of each year and an interest rate of 10% is closest to what amount? What is the present value if the annuity is instead for 25 years?
A) $11,075.52
B) $108,924.48
C) $120,000.00
D) $228,924.48

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The Answer of The present value of an annuity with cash flows forever of $12,000 at the end of each year and an interest rate of 10% is closest to what amount? What is the present value if the annuity is instead for 25 years?
A) $11,075.52
B) $108,924.48
C) $120,000.00
D) $228,924.48

The Present Value of an Annuity with Cash Flows Forever