Kizspy | Question: 38
(Choose 1 answer)
(20635) Perpetuity: Your father is 60 years old and wants to set up a cash flow stream that would be forever. He would like to receive $20,000 every year, beginning at the end of this year. If he could invest in account earning 9 percent, how much would he have to invest today to receive his perpetual cash flow?(Round to the nearest dollar.)
A. $222,222
B. $200,000
C. $189,000
D. $235,200
