> Accounting question about assets with fixed interest?

Accounting question about assets with fixed interest?

Posted at: 2014-12-05 
Answer is (D). $100 / 0.05 = $2,000.

If the current and future rate of interest is 5 percent, an asset (with zero carrying costs) that yields a continuous annual income of $100 will have a present value of

(A) $100 (B) $500 (C) $1,000

(D) $2,000 (E) $50,000