# Fall07:What is the present value of a perpetuity with an annual year-end payment of $1,500 and

Fall07:What is

the present value of a perpetuity with an annual year-end payment of $1,500 and

expected annual rate of return equal to 12 percent?

A. $14,000

B. $13,500

C. $11,400

D. $12,500

Level of difficulty: Easy