Multiple Choice
Present Value of a Perpetuity A perpetuity pays $50 per year and interest rates are 9 percent.How much would its value change if interest rates decreased to 6 percent?
A) $150.00 increase
B) $150.00 decrease
C) $277.78 increase
D) $277.78 decrease
Correct Answer:
Verified
Correct Answer:
Verified
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