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Q13 hw 2 Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,150 monthly. The contract currently sells for $71,000. Required: (a)
Q13 hw 2
| Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,150 monthly. The contract currently sells for $71,000. |
| Required: | |
| (a) | What is the monthly return on this investment vehicle? |
| (Click to select) 1.94% 1.62% 61.74% 1.86% 1.38% | |
| (b) | What is the APR? (Do not round your intermediate calculations.) |
| (Click to select) 21.38% 20.41% 17.49% 19.44% 17.89% |
| (c) | What is the effective annual rate? (Do not round your intermediate calculations.) |
| (Click to select) 22.33% 19.14% 23.39% 21.27% 20.20% |
rev: 09_17_2012
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Finance Fundamentals For Nonprofits
Authors: Woods Bowman
1st Edition
1118004515, 9781118004517
