What is the annual payout of this perpetuity

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Reference no: EM131615788

Tim is creating a trust fund for all of his future descendants. He wishes to purchase a perpetuity that pays $1,000,000 per year forevermore. Suppose that he can earn 4.5%. What is the annual payout of this perpetuity?

A. $4,500.00

B. $34,122.65

C. $45,000.00

D. $4,500,000.00

E. $4,679,055.22

Reference no: EM131615788

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