Question
8. An insurance company is selling a perpetual annuity contract that pays $3,000 monthly. The contract sells for $200,000. What is the monthly return on
8. An insurance company is selling a perpetual annuity contract that pays $3,000 monthly. The contract sells for $200,000. What is the monthly return on this investment vehicle? (3 marks)
9. What is the present value of an annuity that pays ten annual cash flows of $3,000 each, beginning in 3 years? Assume that the appropriate discount rate is 5%. (6 marks)
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Rockin Your Business Finances
Authors: Chrstine Odle
1st Edition
0999135104, 9780999135105
