A small lottery prize offers $$99$ per year forever, with the first payment occurring today. If the relevant interest rate is $12\%$ per year $($as an EAR$),$ the value of the entire prize today is $

Hint: There is more than one way to solve this problem $--$ but however you solve it$,$ all cash flows must be brought to the "year $0"$ point. Look carefully at the timing of these payments and compare that to what the PV Perpetuity formula assumes about timing.

Margin of error for correct responses: $+/-.05$