Question
1.) If you put up $27,000 today in exchange for a 6.50 percent, 11-year annuity, what will the annual cash flow be? A. $3,511.49 B.
1.) If you put up $27,000 today in exchange for a 6.50 percent, 11-year annuity, what will the annual cash flow be?
A. $3,511.49
B. $6,029.95
C. $2,454.55
D. $3,336.41
E. $3,690.83
2.) Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,500 monthly. The contract currently sells for $63,000/
A. What is the monthly return on this investment vehicle?
B. What is the APR?
C. What is the effective annual rate?
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Capital As Power
Authors: Jonathan Nitzan, Shimshon Bichler
1st Edition
0415496802, 978-0415496803
