Multiple Choice
You have won a lottery prize that promises to pay you and your descendants $1,000 a year forever.If the lowest price you are willing to sell this perpetuity for is $20,000,then you must be assuming that the relevant interest rate is
A) 5%
B) 10%
C) 15%
D) 20%
Correct Answer:
Verified
Correct Answer:
Verified
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