Question: Question 31 3 pts What is the difference in present value between a perpetuity that pays $500 per year and an ordinary annuity that pays

Question 31 3 pts What is the difference in present value

Question 31 3 pts What is the difference in present value between a perpetuity that pays $500 per year and an ordinary annuity that pays $500 per year for 25 years? Assume a discount rate of 5% and cash flows at the end of the period. Enter your answer as a number rounded to 2 decimal places. (An answer of $100.125 would be entered as 100.13)

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