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Valuing Perpetuities Easydoesit Life Insurance Company is selling a perpetuity contract that pays a $780 monthly. The contract currently sells for $92,000. What is the
Valuing Perpetuities
Easydoesit Life Insurance Company is selling a perpetuity contract that pays a $780 monthly. The contract currently sells for $92,000. What is the monthly return on this investment vehicle? What is the APR? The effective annual return?
Monthly return: ____________%
APR: ____________%
EAR: ___________%
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