Your rich great, great aunt just passed away at the age of 91. She liked you more than she let on and left you in her will. You will receive 100 British bonds that pay interest forever

The amount of annual interest payments that you will receive is $5,000. If you could invest your money at 4.25%, how much are these bonds worth today?
A) $64,480
B) $197,250
C) $250,000
D) $117,647
E) $55,000

Answer: D

Business

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