Question: A perpetuity will pay $ 500$500 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity

A perpetuity will pay

$ 500$500

per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is

88%?

$ 2 comma 756$2,756

$ 3 comma 675$3,675

$ 2 comma 297$2,297

$ 4 comma 594

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