If the Interest Rate Is 18%, and Will Remain 18

If the interest rate is 18%, and will remain 18% forever, how much would a rational investor be willing to pay for an asset that will pay him 9,440 dollars 1 year from now, 1,392 dollars 2 years from now, and nothing at any other time?

A) 9,000 dollars
B) 171,000 dollars
C) 8,000 dollars
D) 50,000 dollars
E) 10,000 dollars

Correct Answer:

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