A Perpetuity with a First Payment of $500 Grows at a Constant

Multiple Choice

A perpetuity with a first payment of $500 grows at a constant rate of 5%.If the interest rate is 7%,what is the Present Value of this perpetuity?

A) $10,000
B) $25,000
C) $7,142.86
D) $4,166.67
E) $50,000