Multiple Choice
You are offered a perpetuity that will pay you $18,000 per year starting in one year.The seller wants you to pay $300,000 for the perpetuity.If you buy it at that price,what return will you earn?
A) 6%
B) 5%
C) 7%
D) 8%
E) 9%
Correct Answer:
Verified
Correct Answer:
Verified
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