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Receiving a perpetuity from the account

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You are going to pay $800 into an account at the beginning of each of 20 years (First payment at t=0). 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 each year will you receive from the perpetuity (round to nearest $1,000)?

A) $140,000

B) $150,000

C) $160,000

D) $170,000

E) None of the above

Reference no: EM133113998

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