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A Life insurance Co. is selling a perpetuity contract that pays $1,000 monthly The contract currently sets for $200,000 Whats the Effective Annual Return on
A Life insurance Co. is selling a perpetuity contract that pays $1,000 monthly The contract currently sets for $200,000 Whats the Effective Annual Return on this investment? Select one a. 5.95% b. 7.18% c. Cannot be calculated as it is a perpetual payment d. 6.45% e. 6.16%
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