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Standards Life Insurance offers a perpetuity that pays annual payments of $12,000. This contract sells for $250,000 today. What is the interest rate? 4.80 percent

Standards Life Insurance offers a perpetuity that pays annual payments of $12,000. This contract sells for $250,000 today. What is the interest rate?

4.80 percent

3.87 percent

4.10 percent

4.21 percent

4.39 percent

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