E. All of the above statements are correct.\ 3. You are going to make 20 annual payments of

$800

, with the first payment made today. At the end of the

40^(th )

year you will begin receiving a perpetuity from the account (first payment received at the end of year 40 ). If the account pays

14%EAR

, how much will you receive, each year from the perpetuity (round to nearest

$1,000

)?\ A.

$122,000

\ B.

$123,000

3. You are going to make 20 annual payments of $800, with the first payment made today. At the end of the 40th year you will begin receiving a perpetuity from the account (first payment received at the end of year 40). If the account pays 14% EAR, how much will you receive, each year from the perpetuity (round to nearest $1,000 )