Investment with insurance policy

Reference no: EM13825949

Problem:

Eternity Insurance set up a trust for you that pays you or your heirs $100 per year at the end of each year forever. If the discount rate for this cash flow is 13%, what is the amount that you would be willing to pay Eternity Insurance for this investment?

A. $1,000.00

B. 869.23

C. 769.23

D. 100.00

Additional Information:

This question is basically belongs to Finance as well as it explains about an investment with insurance policy as well as the amount to be paid for a plan that pays the certain amount forever.

Reference no: EM13825949

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