Ask Question
17 August, 05:50

Live forever life insurance co. is selling a perpetuity contract that pays $2,000 monthly. the contract currently sells for $125,000. what is the monthly return on this investment vehicle?

+3
Answers (1)
  1. 17 August, 06:28
    0
    Value of contract = Monthly income / r where 'r' is the monthly return

    $125,000 = $2,000 / r

    r = $2,000 / $125,000

    = 1.6%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Live forever life insurance co. is selling a perpetuity contract that pays $2,000 monthly. the contract currently sells for $125,000. what ...” 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