Problemlive forever life insurance co is selling a, Ask an Expert

Accounting

Problem:

Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,200 monthly. The contract currently sells for $109,000.

Required:

Question 1: What is the monthly return on this investment vehicle?

Question 2: What is the APR?

Question 3: What is the effective annual return?

Note: Please show guided help with steps and answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173664

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