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Mary is going to receive a 38-year annuity of $12,000. Nancy is going to receive a perpetuity of $12,000. If the appropriate interest rate is

Mary is going to receive a 38-year annuity of $12,000. Nancy is going to receive a perpetuity of $12,000. If the appropriate interest rate is 8.7%, how much more is Nancys cash flow worth (today)? Again, completely ignore the sign of the PVs.

a. $951.91

b. $6,957.53

c. $5,793.48

d. $1,109.27

e. $4,579.95

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