Question
Live Forever Insurance Company is selling a perpetual annuity contract that pays $3,400 monthly. The contract currently sells for $337,000. What is the monthly return
Live Forever Insurance Company is selling a perpetual annuity contract that pays $3,400 monthly. The contract currently sells for $337,000.
What is the monthly return on this investment vehicle?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
What is the APR?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
What is the effective annual return?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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Financial Management Principles And Applications
Authors: Dr. S. Kr. Paul, Prof. Chandrani Paul
1st Edition
1647251664, 9781647251666
