What's the rate of return you would earn if you paid $3,480 for a perpetuity that pays $70 per year?   a. 2.05%     b. 4.02%     c. 1.01%     d. 4.11%     e. 2.01%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 4QTD
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What's the rate of return you would earn if you paid $3,480 for a perpetuity that pays $70 per year?
  a. 2.05%  
  b. 4.02%  
  c. 1.01%  
  d. 4.11%  
  e. 2.01%
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