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An annuity yields a payment of R 5 7 , 0 0 0 at the end of the first year, where after the annual payments

An annuity yields a payment of R57,000 at the end of the first year, where after the
annual payments grows by 8% per year in perpetuity. Calculate the present value of
the annuity assuming a market related yield of 12% per year (the discount rate).
A. R1,524,000
B. R1,245,000
C.81,425,000
D. R1,225,000

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