Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $3,300 monthly. The contract currently

Question:

Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $3,300 monthly. The contract currently sells for $425,000. What is the monthly return on this investment vehicle? What is the APR? The effective annual return?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...