6. Valuing Perpetuities Easydoesit Life Insurance Company is selling a perpetuity contract that pays a $ 780.00 monthly. The contract currently sells for $ 92,000.00. What is the monthly return on this investment vehicle? What is the APR? The effective annual return? a. Monthly return % Points: 3.33 b. APR = % Points: 3.33 C. EAR _% Points: 3.34 7. Calculating the Number of Periods You have $ 2,500.00 today. You need $ 4,200.00. If you eam 0.65% per month, how many months will you wait? months Points: 10 8. Calculating Annuity Present Values You want to borrow $ 32,000.00 from your local bank to buy a new sailboat. You can afford to make monthly payments of $ 550.00, but no more. Assuming monthly compounding, what is the highest APR you can afford on a 72 month loan? % Points: 10