you are willing to pay $15,625 to purchase a perpetuity which will pay you and your heirs $1,250 each year forever: if your required rate of return remains the same as in perpetuity then how much would you be willing to pay if this were a 20 year annual payment, ordinary annuity instead or perpetuity?

a. $17,157

b. $11,931

c. $13,922

d. $12,273

e. $10,342