(Present value of a growingperpetuity)What is the present value of a perpetual stream of cash flows that pays $2,500 at the end of year one and the annual cash flows grow at a rate of 2% per yearindefinitely, if the appropriate discount rate is 10%? What if the appropriate discount rate is 8%?

a.If the appropriate discount rate is 10%, the present value of the growing perpetuity is$31250 (Correct)

31250. (Round to the nearestcent.)

b.If the appropriate discount rate is 8%, the present value of the growing perpetuity is

$41667. (Round to the nearest cent.)

The online grading tool is saying A is correct but b is incorrect.

Can you help verify the correct answer for part b?

Thanks,