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Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1635 monthly. The contract...

Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1635 monthly. The contract currently sells for $140263. What is the monthly return on this investment vehicle?

Solutions

Expert Solution

monthly return=monthly income/current value

=(1635/140263)

which is equal to

=1.17%(Approx).

jeff jeffy answered 2 years ago
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