Determine the present value of an annuity which pays out 12000 at the end of each year in perpetuity if the interest rate is 4% compounded annually. A. 320000 B. 312000 C. 310000 D. 318000 E. 300000

To determine the present value of an annuity that pays out 12000 4\% where:- is the present value,- is the annual cash payment,- is the interest rate.Given:- - Substitute the given values into the formula: Calculate the present value: Therefore, the present value of the annuity is 300000 \