abled: Midterm $($Module $1-6)1$

A perpetuity pays $$100$ per year and interest rates are $6\mathrm{.}5$ percent. How much would its value change if interest rates increased to $9$ percent?

Multiple Choice

$$250\mathrm{.}00$ increase

$$250\mathrm{.}00$ decrease

$$427\mathrm{.}35$ increase

$$427\mathrm{.}35$ decrease