An investment promises to pay you $5,000 per year forever with the first payment at time 1. If the interest rate is 4.07% per year, determine the maximum you would be willing to pay for this investment. Enter your answer rounded to 2 decimal places. Enter your response below. Number

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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An investment promises to pay you $5,000 per year forever with the first payment at time 1. If the
interest rate is 4.07% per year, determine the maximum you would be willing to pay for this investment.
Enter your answer rounded to 2 decimal places.
Enter your response below.
Number
Transcribed Image Text:An investment promises to pay you $5,000 per year forever with the first payment at time 1. If the interest rate is 4.07% per year, determine the maximum you would be willing to pay for this investment. Enter your answer rounded to 2 decimal places. Enter your response below. Number
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