Question
Live Forever Life Insurance Co. is selling a perpetuity contract that pays $2,000 monthly. The contract currently sells for $125,000. What is the monthly return
Live Forever Life Insurance Co. is selling a perpetuity contract that pays $2,000 monthly. The contract currently sells for $125,000.
What is the monthly return on this investment vehicle?(Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
What is the APR?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
What is the effective annual return?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
