If the interest rate is 8 percent, a person who is offered the opportunity to buy an annuity paying $30,000 per year forever should

a. do so if the price is greater than $375,000
b. do so if the price is less than $375,000
c. be willing to pay only $37,037 for it
d. be willing to pay $77,037 for it
e. be willing to pay no more than $300,000 for it


B

Economics

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