The Copyright Term Extension Act of 1998 is also known as the Sony Bono Act and more satirically as the Mickey Mouse Protection Act.

Basically, the law changed the length of time copyright works are protected from a maximum of 50 years to a maximum of 95 years.

Assume that a hypothetical work earns $1000 per year royalty payment while protected by copyright, and earns nothing once the work goes into the public domain when copyright protection ends.

Assume the annual rate of interest is 5 percent.

Assume that there is no significant difference between a 95 year protection period or simply copyrighting material forever. That is, the copyright term never expires.

Your task is to compute the present value of the perpetuity.