Problemmaybepay life insurance co is selling a perpetual, Ask an Expert

Finance

Problem:

Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $2,400 monthly. The contract currently sells for $332,000.

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: Be sure to show how you arrived at your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162188

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