e. $48,207.08 9. What's the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate is 5%? a. $76,000.00 b. $72,960.00 c. $63,840.00 d. $60,040.00 e. $57,760.00 What's the rate of return you would earn if you paid $1,780 for a perpetuity that pays $85 per 10. year? a. 5.92% 4.25% 4.92% 4.63% 4.78% b. . de. e. 11. Your grandfather is about to retire, and he wants to buy an annuity that will provide him with 80,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today? a. $955,507.24 b. $1,202,089.76 c. $1,027,427.14 d. $1,243,186.84 e. $1,058,249.96