At what interest rate would this be fair deal

Assignment Help Financial Management

Reference no: EM131837546

Curly’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $39,000 per year forever. A representative for Curly’s tells you the policy costs $640,000.

At what interest rate would this be a fair deal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Interest rate

Reference no: EM131837546

Questions Cloud

How much will you have to pay every two years : You are thinking about buying a piece of art that costs $20,000. how much will you have to pay every two years?

Commonly associated with personal financial decisions : What types of risks are commonly associated with personal financial decisions?

How effectively you can communicate with the reader : Using the determinants of price elasticity of demand, discuss whether you think the elasticity of demand for butter to be inelastic or elastic?

Solve problem using comparative statement data : Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal.

At what interest rate would this be fair deal : Curly’s Life Insurance Co. is trying to sell you an investment policy that will pay you. At what interest rate would this be a fair deal?

What are inputs and outputs of UPS package tracking system : Case Study - UPS Competes Globally with Information Technology. What are the inputs, processing, and outputs of UPS's package tracking system

Finding times interest earned : Common stock outstanding January 1, 2017, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2017.

Calculate your monthly payments on mortgage : Calculate the amount of interest paid over the life of this mortgage. Calculate your monthly payments on this mortgage.

Compute the cost of goods for panza corporation : Panza Corporation experienced a fire on December 31, 2017, in which its fi nancial records were partially destroyed. It has been able to salvage some.

User Account

All Pages