Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $3,300 monthly. The contract currently

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Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $3,300 monthly. The contract currently sells for $425,000. What is the monthly return on this investment vehicle? What is the APR? The effective annual return?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...
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Essentials of Corporate Finance

ISBN: 978-1259277214

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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