How much money must Brock Spack have on deposit today at the Bridgeview Community Bank if he wants to be able to withdraw $5,750 at the beginning of each year forever and he can earn a 3.6% average annual rate of return on his account's balance? [Question 4 that follows involves a perpetuity, or stream of unending payments, that will occur at the beginning of each semiannual period.] 

A. $5,550.19

 B. $165,472.22

 c. $159,722.22

 D. $5,957.00

 E. $20,700.00 

Answer rating: 100% (QA)

This question requires calculating the present value of a perpetuity which refers to ... View the full answer