You Are Currently at Time Period 0, and You Will

Multiple Choice

You are currently at time period 0, and you will receive the first payment on an annual payment annuity of R100 in perpetuity at the end of this year.Six full years from now you will receive the first payment on an additional R150 in perpetuity, and at the end of time period 10 you will receive the first payment on an additional R200 in perpetuity.If you require a 10 percent rate of return, what is the combined present value of these three perpetuities?

A) R2,349.50
B) R2,526.85
C) R2,685.42
D) R2,779.58
E) R2,975.40