The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $14,500 per year forever. If the required return on this investment is 5.1 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) Present value $ Suppose the company told you the policy costs $310,000. At what interest rate would this be a fair deal? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) Interest rate %
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $14,500 per year forever. If ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
All of the following can be considered managerial responsibilities except: 1. making action plans to solve organizational problems. 2. creating new products and services. 3. allocating human resources to coordinate the work to be done. 4.
Answers (1)
A check payment for $658 was incorrectly entered in the Cash account as $856. Which of the following adjustments needs to be made?
Answers (1)
What does and doesnt cause procrastination
Answers (1)
About 20 years ago, sturdy light, inc., produced a sturdy, lightweight backpack in a market that was rapidly growing. sturdy light became a leader in this market. eventually, the backpack market reached the maturity stage and slowed down.
Answers (1)
Telecom Co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. To induce customers, Telecom Co. provides a free phone. Telecom Co. normally sells the phone on a stand-alone basis for $200.
Answers (1)
New Questions in Business
A firm has three different production facilities, all of which produce the same product ... While reviewing the firm's cost data, Jasmin, a manager, discovers that one of the plants has a higher average cost than the other plants and suggests
Answers (1)
Five jobs are waiting to be processed. Their processing times and due dates are given below. Using the shortestprocessing time dispatching rule, in which order should the jobs be processed?
Answers (1)
Acme Foods wants to make its chips saltier, but it doesn't want to spend more than it has to on salt. A sample of consumers are asked to compare its current chip (saltiness = 100) with saltier versions and to say whether the new version is saltier.
Answers (1)
Which of the following comparisons best isolates the impact of a change in activity on performance?
Answers (1)
If an investor anticipates an annual rental income from a leased property to be $400,000 dollars, this expected sum has a direct bearing on what the investor will pay for the property. This is an example of
Answers (1)