You have the opportunity to buy a perpetuity which pays $1,000 annually?

a. $6,666.67 because that amount invested at a return of 15% per annum earns $1,000 per year in interest. However annuities and perpetuities are often insurance products as well and may offer life insurance benefits that should be taken into consideration. Of course, seeing how this is likely a home work assignment, none of that would be considered. Mind you, as a homework assignment, your primary benefit is if you had learned enough from class to do your homework, as you're resorting to asking Yahoo Answers, you need to determine why you did not know the answer which you should've learned from class.