What amount, invested today at 6% compounded monthly, will support perpetual monthly payments of $500? The first payment will be made one month from now.

A) $500,000
B) $400,000
C) $300,000
D) $200,000
E) $100,000

Compounded Monthly

Interest calculation method where interest accrued is added to the principal sum each month, leading to an increase in the subsequent month's interest calculation.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.