Your friend promises you a perpetuity of paying you some money in each year. The first payment occurs in year 1, the present value of the promise is $100 and the interest rate is 10%, which of the following is the present value at year zero for the payment made at year 10?

a.

$8.26

b.

$6.83

c.

$5.64

d.

$3.86

e.

None of the above