How much will you receive each year from the perpetuity

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Reference no: EM13953813

You are going to pay $800 into an account at the beginning of each of 20 years. The account will then be left to compound for an additional 20 years. At the end of the 41st year you will begin receiving a perpetuity from the account. If the account pays 14%, how much will you receive each year from the perpetuity (round to nearest $1,000)?

NOTE: Please use a financial calculator or formula, NO EXCEL SHEET.

A) $150,000

B) $170,000

C) $160,000

Reference no: EM13953813

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