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32 2. You have two options: - Buy an ordinary perpetuity that pays $2000 every 6 -months or - Buy an annuity-due that pays $R

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2. You have two options: - Buy an ordinary perpetuity that pays $2000 every 6 -months or - Buy an annuity-due that pays $R every three months for 20-years Both annuities have an interest rate of j4=8% and have the same present value. What is the value of R ? You are given: a300.02=39.7445 (A) $1233.27 (B) $1245.58 (C) $1221.16 (D) $1258.04

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